TIDMXTR
RNS Number : 2760L
Xtract Resources plc
30 September 2016
30 September 2016
Xtract Resources Plc
("Xtract" or "the Company")
Interim Results
Xtract Resources Plc (AIM: XTR), the gold and copper mining and
development company with projects in South America and Mozambique,
announces an update of operations and projects and its unaudited
interim results for the six months ended 30 June 2016.
Financial
-- Revenue of GBP0.29m (H1 15: GBP0.12m)
-- Net loss of GBP5.24m (H1 15: GBP0.81m)
-- Operating expenses GBP1.48m (H1 15: GBP0.93m)
-- Cash of GBP0.94m (FY15: GBP3.76m)
-- Net assets of GBP5.41m (FY 15: GBP7.55m)
Operational & Corporate Highlights
-- Received final approval from the Mozambican mining
authorities to complete the acquisition of 100% of the Manica gold
project in Mozambique from Auroch Minerals NL
-- Independent technical report completed on the mineral
resources of the Fair Bride gold deposit at the 3990 Mining
Concession in Mozambique which confirmed that the resource has
increased by 36% to 1.257Moz at a cut-off of 1g/t
-- Conditional sale and purchase agreement entered into to sell
the Manica gold project in Mozambique for a cash consideration of
US$17.5m. In September the agreement lapsed due to certain
precedent not being met
-- A further US$1.65m drawn down during H1 2016 on the Company's
existing facility with YA Global Master SPV Ltd
-- Chepica operation granted permission during February 2016 to
restart after the December 2015 dual fatalities experienced at the
mine
-- The Board elected not to proceed with the O'Kiep and
Carolusberg tailings after concluding that the recoveries were too
low to produce a viable copper concentrate
Post half year end
-- Colin Bird appointed as Executive Chairman of the Company
-- Agreement has been reached with Auroch Minerals NL regarding
the US$2.5m deferred acquisition payment
-- Raised GBP1m through a placing and drew down a further
GBP1.42m on its existing SEDA facility with YA Global Master SPV
Ltd
-- After undertaking a review of the Chepica gold/copper mine
the Company advised Minera Polar that it would cease to provide any
further funding for the project
Colin Bird, Executive Chairman commented:
" The period under review saw positive developments at the
Manica gold project in Mozambique whilst the Chepica gold/copper
mine continued to be problematic. Post the period under review, the
cash requirement for the Chepica mine continued against poor
performance of both the underground mine and processing plant. The
mixed ore grades and metal content challenged the process plant and
a decision was taken to cease operations at the plant and optimise
the crusher circuit and install a larger floatation capability. The
underground mining continued to be problematical and re-entry
attempts into the Chepica main mine were proving most difficult
against very weak ground requiring a reappraisal of support
techniques.
After complete review, the Company decided that it could not
reasonably forecast quality earnings that were sustainable against
the new money required to bring the project back on stream.
Consequently, it was decided in September to relinquish our option
and cease to send further funding to Minera Polar. The option
agreement was previously entered into with Minera Polar and any
outstanding debts remain debts of Minera Polar. As a result, the
Company has recognised a net impairment charge of GBP2.34 million
in the consolidated income.
The Board announced on 26 August 2016 that I would be appointed
as Executive Chairman with immediate effect. This appointment was
made to assist the executive management to review and make the
necessary decisions to progress company making projects and defer
or abandon projects which were unlikely to add any shareholder
value or indeed threaten shareholder value.
On 13 September 2016, Mr. Jan Nelson the Chief Executive
Officer, resigned with immediate effect and I assumed his
responsibilities. We will seek to appoint a replacement for Mr.
Nelson in due course.
The Company at the moment is focusing its efforts on the Manica
project, where we believe good progress was made during the period.
In March we announced that the final outstanding approval had been
obtained and all conditions had been fulfilled in order to complete
the acquisition of 100% of the Manica project from Auroch Minerals
NL. The Company announced in May that it had reached agreement with
Nexus Capital Limited ("Nexus") and Mineral Technologies
International Limited ("MTI") to dispose of 100% of its interest in
the Manica project for a cash consideration of US$17.5m, subject to
certain conditions including further due diligence. Whilst the
Board recognised the potential of the Manica project, following
detailed consideration it concluded that the disposal of the Manica
project at the time would be in the best interests of shareholders
for a variety of reasons, including the potential achievement of an
attractive return on investment and the removal of the associated
funding requirement.
Following certain revisions to the terms of the proposed
transaction, which have been notified, the Company announced that
the agreement had lapsed due to certain conditions precedent not
being met and will therefore not be effected.
The Company reached an agreement with Auroch regarding the
U$2.5m deferred consideration whereby a payments of US$0.75 million
and US$0.1 million respectively, were made to the Auroch during
August and September 2016. A total of US$1.65 million remains
outstanding and the Company is in further discussions to resolve
the amounts due to Auroch.
The alluvial project is in the process of being reviewed and
discussions are taking place which we expect will minimise the
financial risk to Xtract whilst facilitating the operation of an
alluvials project in conjunction with MTI Ventures. These
discussions are progressing well and the Company anticipates that a
satisfactory conclusion for both parties will be reached.
The Company is currently seeking to finalise the bankable
feasibility study at Manica, which is we anticipate to be delivered
no later than the end of November 2016, and is assessing its
options in order to maximize the potential return for
shareholders.
In July 2016, the Company completed a Placing of Ordinary Share
from new investors, to raise GBP1 million (before expenses).
The Company drew down a further US$0.45 million from its loan
facility with YA Global Master ("YAGM"). Following the Loan
Facility draw-down, the balance stands at US$2.1 million with a
further US$1.85 million available for draw-down.
In addition to the draw down form the loan facility, the Company
drew down GBP0.67 million and GBP0.75 million respectively, from
its existing SEDA with YAGM. A total of GBP0.20 million has been
applied against the Company's existing loan.
The board is taking action to decrease the Company's overheads
and good progress has been made to date.
By the end of November 2016 I hope to report that Xtract will
have in place full ownership of a gold mining prospect with a high
return bankable feasibility study in place."
Enquiries:
Xtract Resources Colin Bird, Executive +44 (0)20
Plc Chairman 3416 6471
Cenkos Securities Derrick Lee +44 (0)131
plc Beth McKiernan 220 6939
+44 (0)207
Beaufort Securities Jon Belliss 382 8300
Xtract Resources PLC
Consolidated Income Statement
For the six month period ended 30 June 2016
Six months ended Year ended
30 June 31 December
2016 30 June 2015
Unaudited 2015 Unaudited Audited
Notes GBP'000 GBP'000 GBP'000
Continuing operations
Concentrate Revenue 287 118 350
Less: Cost of sales (614) (234) (288)
------------ ---------------- -----------
Gross Profit: (327) (116) 62
Administrative and operating
expenses (1,481) (930) (2,426)
Project expenses (279) (29) (147)
Operating loss (2,087) (1,075) (2,511)
Other gains and losses - 359 610
Finance (cost)/income (814) (94) (371)
Impairment of Intangible
asset (2,343) - (2,217)
Impairment of Financial
Asset available for
sale - - (86)
(Loss)/profit before
tax (5,244) (810) (4,575)
(Loss)/profit for the
period from continuing
operations 3 (5,244) (810) (4,575)
(Loss)/profit for the period
from discontinued operations 3 - - -
(Loss)/profit for the
period 5 (5,244) (810) (4,575)
------------ ---------------- -----------
Attributable to:
Equity holders of the
parent (5,244) (810) (4,575)
Non-controlling interest - - -
------------ ---------------- -----------
(5,244) (810) (4,575)
------------ ---------------- -----------
Net (loss)/profit per
share
Continuing (0.06) (0.00) (0.07)
Discontinued 0.00 0.00 0.00
------------ ---------------- -----------
Basic (pence) 5 (0.06) (0.00) (0.07)
============ ================ ===========
Continuing (0.00) 0.00 (0.07)
Discontinued (0.00) 0.00 (0.00)
------------ ---------------- -----------
Diluted (pence) 5 (0.00) 0.00 (0.07)
============ ================ ===========
Xtract Resources PLC
Consolidated statement of comprehensive income
For the six month period ended 30 June 2016
Six months ended Year ended
30 June 31 December
2016 30 June 2015
Unaudited 2015 Unaudited Audited
GBP'000 GBP'000 GBP'000
(Loss)/profit for the
period (5,244) (810) -(4,575)
---------------- --------------- -----------
Other comprehensive income
Items that may be reclassified
subsequently to profit
and loss
Revaluation of available-for-sale
investments - - (483)
Items that will not be
reclassified subsequently
to profit and loss
Exchange differences
on translation of foreign
operations (136) 6 167
Other comprehensive (loss)/income
for the period (5,380) (804) (316)
Total comprehensive (loss)/income
for the period (5,380) (804) (4,891)
Attributable to:
Equity holders of the
parent (5,380) (804) (4,891)
Non-controlling interest - - -
---------------- --------------- -----------
(5,380) (804) (4,891)
================ =============== ===========
Xtract Resources PLC
Consolidated statement of changes in equity
As at 30 June 2016
Share Share Warrant Share-based Available-for-sale Foreign Accumulated Total
Capital premium reserve payments investment currency losses Equity
GBP'000 account GBP'000 reserve reserve translation GBP'000 GBP'000
GBP'000 GBP'000 GBP'000 reserve
GBP'000
-------- -------- -------- ------------ ------------------- ------------ --------------------- -----------
Balance at
31 December
2014 1,776 38,742 205 591 483 (396) (39,802) 1,599
-------- -------- -------- ------------ ------------------- ------------ --------------------- ---------
Loss for
the period - - - - - - (810) (810)
Foreign currency
translation
difference - - - - - 6 - 6
Issue of
Shares 258 4,889 - - - - - 5,147
Share based - - - - - - - -
payment expense
Issue of
warrants - (456) 456 - - - - -
Exercise
of warrants 23 138 (161) - - - - -
-------- -------- -------- ------------ ------------------- ------------ --------------------- ---------
Balance at
30 June 2015 2,057 43,313 500 591 483 (390) (40,612) 5,942
-------- -------- -------- ------------ ------------------- ------------ --------------------- ---------
Loss for
the period - - - - - - (3,765) (3,765)
Foreign currency
translation
differences - - - - - 161 - 161
Revaluation
of
available-for-sale
investments - - - - (483) - - (483)
Issue of
Shares 196 5,375 - - - - - 5,571
Expiry of
share options - - - (278) - - 278 -
Share based
payment expense - - - 127 - - - 127
Balance at
31 December
2015 2,253 48,688 500 440 - (229) (44,099) 7,553
-------- -------- -------- ------------ ------------------- ------------ --------------------- ---------
Loss for
the period - - - - - - (5,244) (5,244)
Foreign currency
translation
difference - - - - - (136) - (136)
Revaluation - - - - - - - -
of
available-for-sale
investments
Issue of
Shares 114 2,725 - - - - - 2,839
Share based
payment expense - - - 22 - - - 22
Issue of
warrants - - 379 - - - - 379
Exercise - - - - - - - -
of warrants
Balance at
30 June 2016 2,367 51,413 879 462 - (365) (49,343) 5,413
======== ======== ======== ============ =================== ============ ===================== =========
Xtract Resources PLC
Consolidated Statement of Financial Position
As at 30 June 2016
30 June 31 December
30 June 2015 2015 Audited
2016 Unaudited Unaudited GBP'000
Notes GBP'000 GBP'000
Non-current assets
Intangible Assets 6 9,714 5,191 4,992
Property, plant & equipment 7 1,515 1,337 1,309
Financial assets available-for-sale 8 - 570 -
11,229 7,098 6,301
Current assets
Trade and other receivables 502 1,091 1,744
Inventories 12 - 45
Cash and cash equivalents 94 2,961 3,763
608 4,052 5,552
Total assets 11,837 11,150 11,853
--------------- ---------- -------------
Current liabilities
Trade and other payables 4,318 3,119 3,555
Interest bearing 1,251 - -
5,569 3,119 3,555
Non-current liabilities
Other payables 403 1,749 312
Provisions 186 74 167
Reclamation and mine
closure provision 266 266 266
855 2,089 745
Total liabilities 6,424 5,208 4,300
Net current assets/(liabilities) 4,961 933 1,997
Net assets 5,413 5,942 7,553
=============== ========== =============
Equity
Share capital 10 2,367 2,057 2,253
Share premium account 51,413 43,313 48,688
Warrant reserve 879 500 500
Share-based payments
reserve 462 591 440
Available-for-sale investment
reserve - 483 -
Foreign currency translation
reserve (365) (390) (229)
Accumulated losses (49,343) (40,612) (44,099)
Equity attributable
to equity holders of
the parent 5,413 5,942 7,553
Non-controlling interest - - -
Total equity 5,413 5,942 7,553
=============== ========== =============
Xtract Resources PLC
Consolidated Statement of Cash Flows
For the six month period ended 30 June 2016
6 months 6 months
period period Year ended
ended ended 31 December
30 June 30 June 2015
2016 2015 Audited
Unaudited Unaudited GBP'000
Notes GBP'000 GBP'000
Net cash used in operating
activities 11 768 (1,329) (3,963)
---------- ---------- -------------
Investing activities
Acquisition of subsidiary
undertaking (3,820) - -
Acquisition of intangible
fixed assets (1,488) (448) (945)
Acquisition of tangible
fixed assets (272) (206) (252)
Disposal of intangible
fixed assets - 392 -
Proceeds from disposal
of available for sale investment - - 371
Net cash from/(used in)
investing activities (5,580) (262) (826)
-------------
Financing activities
SEDA backed loan 1,232 (455) (356)
Proceeds on issue of shares - 4,909 8,769
Finance lease repayments (112) (97) 8
Loans from Directors 23 (5) (5)
Net cash from financing
activities 1,142 4,352 8,416
-------------
Net increase/(decrease)
in cash and cash equivalents (3,670) 2,761 3,627
Cash and cash equivalents
at beginning of period 3,763 163 163
Effect of foreign exchange
rate changes - 37 (27)
-------------
Cash and cash equivalents
at end of period 93 2,961 3,763
---------- ---------- -------------
Significant Non Cash movements
1. The assets and liabilities of Mistral Resource Development
Corporation and its subsidiary undertaking, Explorator Limitada,
were acquired in March 2016 by the issue of Ordinary shares of
0.01p each to a value of GBP2,843, in addition total cash
consideration of GBP5,694K, of which GBP1,792k is deferred.
Xtract Resources PLC
Notes to the interim financial information
For the six month period ended 30 June 2016
1. General information
Xtract Resources PLC ("Xtract") is a company incorporated in
England and Wales under the Companies Act 2006. The Company's
registered address is 4(th) Floor, 2 Cromwell Place, South
Kensington, London SW7 2JE. The Company's ordinary shares are
traded on the AIM market of the London Stock Exchange. The Company
invests and engages in the management, financing and development of
early stage resource assets.
2. Accounting policies
Basis of preparation
Xtract prepares its annual financial statements in accordance
with International Financial Reporting Standards (IFRSs) as adopted
by the European Union (EU).
The consolidated interim financial information for the period
ended 30 June 2016 presented herein has been neither audited nor
reviewed. The information for the period ended 31 December 2015
does not constitute statutory accounts as defined in section 434 of
the Companies Act 2006 but has been derived from those accounts.
The auditor's report on those accounts was not qualified and did
not contain statements under section 498 (2) or (3) of the
Companies Act 2006 but did draw attention by way of emphasis to the
material uncertainty around the going concern assumption. As
permitted, the Group has chosen not to adopt IAS 34 'Interim
Financial Reporting'.
The interim financial information is presented in pound sterling
and all values are rounded to the nearest thousand pounds (GBP'000)
unless otherwise stated.
The interim consolidated financial information of the Group for
the six months ended 30 June 2016 were authorised for issue in
accordance with a resolution were authorised for issue by the
Directors on 29 September 2016.
Going concern
The operations of the Group are currently financed through a
combination of funds which the Company has raised from shareholders
and amounts drawn from the loan facility with YAGM. An operating
loss has been reported as the Group's assets did not generate
significant revenues. During September 2016 the Company announced
it would no longer continue operating its Chepica asset and
therefore the Directors anticipate net operating cash outflows for
the next twelve months from the date of signing these financial
statements.
In common with early producing companies, the Company raises
finance for its activities in discrete tranches to finance its
activities for limited periods only and further funding will be
required from time to time to finance those activities.
The Directors have assessed the working capital requirements for
the forthcoming twelve months and have undertaken the following
assessment.
Upon reviewing those working capital requirements for the
forthcoming twelve months, the directors consider that the Company
is likely to require additional financial resources in the
twelve-month period from the date of approval of these financial
statements to enable the Company to fund its current operations and
to meet its commitments. The Directors would then expect for the
funds to be raised through a combination of project finance
funding, the current SEDA backed loan note and further equity fund
raising.
The Group's ability to continue its operations is a critical
accounting assumption and as a result the directors have concluded
that the uncertainty represents a material uncertainty that casts
significant doubt upon the company's ability to continue as a going
concern and that, therefore, the company may be unable to realise
its assets and discharge its liabilities in the normal course of
business.
Nevertheless, after making enquiries and considering the
uncertainties described above, the directors have a reasonable
expectation that the company has adequate ability to raise
resources to continue in operational existence for the foreseeable
future. The Directors therefore continue to adopt the going concern
basis of accounting in preparing the annual financial
statements.
The financial statements do not include any adjustments relating
to the recoverability and classification of assets and liabilities
that may be necessary if the going concern basis of preparation of
the financial statements is not appropriate.
On this basis the Board believes that it is appropriate to
prepare the financial statements on the going concern basis.
Changes in accounting policy
The accounting policies applied are consistent with those
adopted and disclosed in the Group Consolidated financial
statements for the year ended 31 December 2015, except for the
changes arising from the adoption of new accounting pronouncements
detailed below.
There are no amendments or interpretations to accounting
standards that would have a material impact on the financial
statements.
3. Business segments
Segmental information
For management purposes, the Group has been organised into three
operating divisions Investment and other, Mining Production and
Mining development. These divisions have been the basis on which
the Group reports its primary segment information.
The Group's reportable segments under IFRS 8 are therefore as
follows:
-- Investment and other - Corporate;
-- Mining Production
-- Mining Development
Segment results
6 months ended Investment Mining Mining
30 June 2016 and Other Production Development Total
GBP'000 GBP'000 GBP'000 GBP'000
Segment revenue
Concentrate
Revenue - 287 - 287
Less: Cost of
sales - (614) - (614)
------------- ------------- -------------- ---------------
Segment Gross
profit - (327) - (327)
Administrative
and operating
expenses (965) (514) (2) (1,481)
Project costs (279) - - (279)
Segment result (1,244) (841) (2) (2,087)
Other gain and - -
losses -
Finance costs (565) (61) (188) (814)
Impairment of
Intangible assets - (2,343) - (2,343)
------------- ------------- -------------- ---------------
Loss before
tax (1,809) (3,245) (190) (5,244)
Tax - - - -
------------- ------------- -------------- ---------------
Loss for the
period (1,809) (3,245) (190) (5,244)
============= ============= ============== ===============
Investment Mining Mining
and Other Production Development Total
6 months ended
30 June 2015 GBP'000 GBP'000 GBP'000 GBP'000
Segment revenue
Concentrate Revenue - 118 - 118
Less: Cost of sales - (234) - (234)
----------- ------------ -------------- ----------
Segment Gross profit - (116) - 116
Administrative
and operating expenses (510) (420) - (930)
Project Costs (29) - - (29)
----------- ------------ -------------- ----------
Segment result (539) (536) - (1,075)
Other gains / losses - 359 - 359
Finance costs (77) (17) - (94)
----------- ------------ -------------- ----------
Loss before tax (616) (194) - (810)
Tax - - - -
----------- ------------ -------------- ----------
Loss for the period (616) (194) - (810)
=========== ============ ============== ==========
Year ended 31 December 2015
Investment Mining Mining
and other Production Development Total
GBP'000 GBP'000 GBP'000 GBP'000
Segment revenue
Concentrate Revenue - 350 - 350
Less: Cost of sales - (288) - (288)
---------------- ------------- ------------- --------------
Segment Gross
profit - 62 - 62
Administrative
and operating expenses (1,452) (974) - (2,426)
Project Costs (147) - - (147)
Segment result (1,599) (912) - (2,511)
Other gains and
losses 436 174 - 610
Impairment of intangible
assets (2,217) - - (2,217)
Impairment of financial
assets available
for sale (86) - - (86)
Finance income
/ (costs) 177 (548) - (371)
(Loss)/Profit
before tax (3,289) (1,286) - (4,575)
Tax - - - -
---------------- ------------- ------------- --------------
(Loss)/Profit for
the period (3,289) (1,286) - (4,575)
================ ============= ============= ==============
30 June 31 December
Balance Sheet 30 June 2016 2015 2015
GBP'000 GBP'000 GBP'000
Total Assets
Mining production 1,962 7,015 6,503
Mining Development 9,744 - -
Investment &
other 131 4,135 5,300
------------ -------- -----------
Total segment
assets 11,837 11,150 11,803
============ ======== ===========
Liabilities
Mining production 1,748 4,594 3,706
Mining Development 2 - -
Investment &
other 4,674 614 594
Total segment
liabilities 6,424 5,208 4,300
============ ======== ===========
The accounting policies of the reportable segments are the same
as the Group's accounting policies which are described in the
Group's latest annual financial statements. Segment results
represent the profit earned by each segment without allocation of
the share of profits of associates, central administration costs
including directors' salaries, investment revenue and finance
costs, and income tax expense. This is the measure reported to the
Group's Board for the purposes of resource allocation and
assessment of segment performance.
4. Tax
At 30 June 2016 the Group has no deferred tax assets or
liabilities.
5. Loss per share
The calculation of the basic and diluted loss per share is based
on the following data:
Six months Year ended
ended
30 June 30 June 31 December
2016 2015 2015
Losses GBP'000 GBP'000 GBP'000
(Losses)/profit for the
purposes of basic earnings
per share being net loss
attributable to equity holders
of the parent (5,244) (810) (4,575)
----------------------------- ----------------------------- ---------------
Number of shares
Weighted average number
of ordinary and diluted
shares for the purposes
of basic earnings per share 9,740,761,586 4,798,111,259 6,474,957,673
----------------------------- ----------------------------- ---------------
(Loss)/profit per ordinary
share basic and diluted
(pence) (0.06) (0.00) (0.07)
----------------------------- ----------------------------- ---------------
In accordance with IAS 33, the share options and warrants do not
have a dilutive impact on earnings per share, which are set out in
the consolidated income statement. Details of the shares issued
during the period as shown in Note 10 of the Financial
Statements.
6. Intangible assets
Land Development Reclamation Development Total
acquisition expenditure & mine Expenditure
costs (Chepica) closure (Manica)
costs
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
As at 1 January
2016 4,184 1,016 266 - 5,466
Additions -
at fair value - - - 8,521 8,521
Additions -
at cost - 295 - 1,193 1,488
Impairment
of Chepica
Asset (4,184) (1,311) (266) - (5,761)
-------------- -------------
As at 30 June
2016 - - - 9,714 9,714
-------------- ------------- ------------ ------------- --------
Amortisation
As at 1 January
2016 363 89 22 474
Charge for
the year 112 60 7 179
Impairment
of Chepica
Asset (475) (149) (29) - (653)
-------------- ------------- ------------ ------------- --------
As at 30 June - - - - -
2016
-------------- ------------- ------------ ------------- --------
Net book value
At 30 June
2016 - - - 9,714 9,714
-------------- ------------- ------------ ------------- --------
At 31 December
2015 3,821 927 244 - 4,992
-------------- ------------- ------------ ------------- --------
1. In March 2016, The Company acquired the Manica licence 3990C
("Manica Project") from Auroch Minerals NL. The Manica Project is
situated in central Mozambique in the Beira Corridor. At the time
of acquisition the project had a JORC compliant resource of 900koz
(9.5Mt@ 3.01g/t) in situ, which has increased to 1.257moz (17.3Mt @
2/2g/t) following an independent technical report completed by
Minxcon (Pty) ltd in May 2016.
2. Land acquisition costs represent the full cost of the part
interest and an earn-in option to acquire the full interest in the
Chepica gold and copper mine property. The cost of the option is
payable by instalments terminating in 2017. Option payments are
non-interest bearing and the Company may, at its sole discretion,
terminate the agreement at any time with no obligation to continue
paying additional instalments. The unpaid instalments are in
current and non-current liabilities.
In September 2016, the Company advised the option holder that it
wold not make future option payments and would cease any further
funding to the Chepica gold and copper project. As a result, the
Company has recognised a net impairment charge of GBP2,343K in the
consolidated income statement which comprises of an impairment of
mine properties charge of GBP5,105K and a write back of the unpaid
option instalments of GBP2,763K.
7. Property, plant and equipment
Cost or fair value Mining Land & Furniture Total
on acquisition plant Buildings & Fittings
of subsidiary & equipment
GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 2016 1,417 103 12 1,532
Additions - at
cost 272 - - 272
At 30 June 2016 1,689 103 12 1,804
------------- ----------- ------------ --------
Depreciation
At 1 January 2016 197 19 7 223
Charge for the
period 57 8 2 67
------------- ----------- ------------ --------
At 30 June 2016 254 27 9 290
------------- ----------- ------------ --------
Net book value
At 30 June 2016 1,435 76 3 1,514
------------- ----------- ------------ --------
At 1 January 2016 1,220 84 5 1,309
------------- ----------- ------------ --------
8. Financial assets available for sale
30 June 30 June 31 December
2016 2015 2015
GBP'000 GBP'000 GBP'000
At beginning of
the period - 2,580 570
Disposal - - -
Movement in fair
value - (810) (570)
At the end of the
period - 1,770 -
-------- -------- -----------
9. Current Liabilities
As at As at As at
30 June 30 June 31 December
2016 2015 2015
GBP'000 GBP'000 GBP'000
Trade creditors and
accruals 4,318 2,141 1,107
Option instalments - 978 2,448
SEDA backed loan 1,251 - -
--------- --------- -------------
5,569 3,119 3,555
--------- --------- -------------
10. Share capital
As at As at As at
30 June 30 June 31 December
2016 Number 2015 2015
Number Number
Issued and fully
paid
Ordinary shares
of 0.01p each
at 1 January 8,603,503,522 3,830,599,981 3,830,599,981
Share issued during
the period 1,137,258,065 2,814,297,716 4,772,903,541
9,740,761,587 6,644,897,697 8,603,503,522
The following ordinary shares were issued during the period:
-- Issued 1 March 2016 - 1,137,258,065 ordinary shares at 0.25p per share
Options and warrants
The following warrants were issued during the period:
-- Issued 9 May 2016 - 316,250,000 exercisable at 0.30p per share
The following share options were issued during the period:
-- Issued 22 January 2016 - 30,000,000 exercisable at 0.19p per share
-- Issued 1 March 2016 - 10,000,000 exercisable at 0.19p per share
11. Cash flows from operating activities
Six month Year ended
Six month period 31 December
period ended 2015
ended 30 June GBP'000
30 June 2015
2016 GBP'000 GBP'000
Profit/(loss) for the
period (5,244) (810) (4,575)
Adjustments for:
Continuing Operations
Depreciation of property,
plant and equipment 67 64 138
Amortisation of intangible
fixed assets 180 94 186
Finance costs 806 84 84
Impairment of Chepica
asset 2,343 - -
Impairment of O'Kiep asset - - 2,217
Impairment of available
for sale investment - - 86
Other (gains) /losses 18 (8) (27)
Gain on disposal of intangible
fixed assets - (359) (338)
Share-based payments expense 22 - 127
------------
Operating cash flows before
movements in working capital (1,808) (935) (2,102)
Decrease/(Increase) in
inventories 33 - (45)
(Increase) in receivables 1,245 (106) (1,546)
(Decrease)/increase in
payables 1,433 (294) (437)
------------
Cash used in operations 903 (1,335) (4,130)
Income taxes paid - - -
Foreign currency exchange
differences (135) 6 167
Net cash used in operating
activities 768 (1,329) (3,963)
------------
12. Related party transactions
Transactions between Group companies, which are related parties,
have been eliminated on consolidation and are therefore not
disclosed. The only other transactions which fall to be treated as
related party transactions are those relating to the remuneration
of key management personnel, which are not disclosed in the Half
Yearly Report, and which will be disclosed in the Group's next
Annual Report.
13. Transactions with directors
Lion Mining Finance Limited, a company in which Colin Bird is a
Director and shareholder has provided administrative and technical
services to the Company amounting to GBP15K plus VAT in the period.
The amount of GBP21K was outstanding as at 30 June 2016 (30 June
2015: GBP21K).
As at 30 June 2016, loans from directors amounted to GBP23K (30
June 2015: GBP Nil). These loans are interest free and repayable by
mutual agreement.
14. Acquisition of Manica Gold Project
On 1 March 2016, the Company acquired from Auroch Minerals
Mozambique (PTY) Ltd the entire issued share capital of its wholly
owned subsidiary, Mistral Resource Development Corporation, the
parent company of Explorator Limitada, a Mozambican incorporated
entity with a 100 % direct interest in the Manica Gold Project. The
total consideration of the acquisition was GBP8,537K.
The net assets acquired and goodwill arising are as follows:
-
Carrying
value Fair value Fair value
before combination adjustment
GBP(000) GBP(000) GBP(000)
Intangible fixed
assets 4,311 4,210 8,521
Property, plant - - -
and equipment
Trade and other
receivables 2 - 2
Bank and cash balances 85 - 85
Trade and other
payables (71) - (71)
4,327 4,210 8,537
-------------------- -------------
Consideration:
Shares issued 2,843
Cash 3,902
Deferred Cash 1,792 (8,537)
------------- -------------
Goodwill on consolidation -
------------- -------------
The assessment of the fair values of the assets and liabilities
is provisional, and will be reviewed prior to the completion of the
Group Consolidated financial statements for the year ending 31
December 2016.
15. Events after the balance sheet date
Fundraising
Placing
In July 2016, the Company completed a Placing of 1,538,461,538
ordinary shares of 0.01p at a price of 0.065p per Ordinary Share
from new investors, to raise GBP1 million (before expenses).
YAGM Loan Facility Draw-Down
In July 2016, the Company drew down a further US$0.45 million
from its loan facility with YA Global Master ("YAGM"). Following
the Loan Facility draw-down, the balance stands at US$2.1 million
with a further US$1.85 million available for draw-down.
Issue of Shares to Manica Creditors
In July 2016, the Company agreed as per the terms of the Manica
acquisition, to settle Manica Creditors amounting to US$0.78
million through the issue 600,694,007 new ordinary shares of 0.01p
at a price of 0.0098p.
YAGM SEDA Draw-Down
In July 2016 the Company drew down GBP0.67 million from its
existing SEDA with YAGM. In accordance with the terms of the SEDA,
which was extended on 9 May 2016 to 31 December 2017, the Company
had issued YAGM with 1,032,811,415 new Ordinary Shares at a price
of 0.065p each.
In September 2016, The Company drew down GBP0.75 million from
its existing SEDA with YAGM. In accordance with the terms of the
SEDA, which was extended on 9 May 2016 to 31 December 2017, the
Company had issued YAGM with 1,875,000,000 new Ordinary Shares at a
price of 0.04p each.
Auroch Minerals
In July 2016, the Company reached an agreement with Auroch
Minerals NL regarding the outstanding US$2.5million deferred
consideration. Payments of US$0.75 million and US$0.1 million were
made after balance sheet date with a total of US$1.65 million
outstanding.
Chepica
In September 2016, the Company announced that it had undertaken
a review of the Chepica Gold/Copper Mine in Chile and determined
that the underlying fundamentals and the risk associated with the
project were no longer supportive of continuing investment by the
Company. On this basis, the Company advised the option holder that
it would no longer make future option payments and would relinquish
its option and mining rights at Chepica.
Manica
In September 2016, the Board of Xtract announced that, the
conditional sale and purchase agreement between the Company, Nexus
Capital Limited and Mineral Technologies International Limited
through which the Company was to dispose of its 100% interest in
the Manica gold project for US$17.5 million, had lapsed due to
certain conditions precedent not being met.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR XKLLLQKFBBBE
(END) Dow Jones Newswires
September 30, 2016 02:02 ET (06:02 GMT)
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