TIDMBOD
RNS Number : 5498H
Botswana Diamonds PLC
25 March 2020
25(th) March 2020
Botswana Diamonds PLC ("Botswana Diamonds" or the "the
Company")
Interim Statement and Financial Results for the Six Months Ended
31(st) December 2019
Botswana Diamonds ("BOD"), the AIM and BSE listed diamond
explorer, continues to develop its portfolio of eight exploration
projects in three sub Saharan countries, Botswana, South Africa and
Zimbabwe. The projects in this highly prospective diamond region
include, greenfield exploration in the Kalahari desert in Botswana
to the development of diamondiferous kimberlites in South Africa
and a JV in Marange, Zimbabwe.
Botswana
-- Sunland Minerals (100% BOD) has undertaken heavy mineral
sampling and detailed geophysics in five of our licences in the
Kalahari. An analysis of the results identified eight high grade
targets. Environmental assessment work is being undertaken on three
of these targets. This is a requirement to obtain drilling permits.
Current plans call for drilling in the second half of 2020.
-- BOD has applied for and expects the imminent award of some
additional licences in the Kalahari.
-- The Maibwe joint venture (BOD 15%) has been subject to
significant delays due in large part to the liquidation of the main
partner, BCL. BCL was a state-owned copper producer providing many
thousands of jobs in Botswana. A new liquidator has been appointed
and proposals are circulating which would lead to a resumption of
work on the four licences where drilling discovered high diamond
grade kimberlites.
South Africa
-- Drilling on the Marsfontein ground intersected kimberlite.
The concession is contiguous to the former Marsfontein mine. A
significant bulk sample of the kimberlitic ground has been
recovered and transported for analysis. It will be processed in the
coming weeks.
-- Exploration continues on Thorny River which is adjacent to
Marsfontein. Drilling in early 2020 did not intersect kimberlite.
The site locations were selected using the latest state of the art
technology. The data is being analysed and the techniques
recalibrated to select the next tranche of drill sites. The targets
are kimberlite pipes covered by a dolerite layer.
-- The company holds prospective ground in Palmietget, Mooikloof
and the Free State. The ground contains diamondiferous kimberlite
pipes. Given the ongoing focus on the Marsfontein and Thorny River
concession only limited work is being undertaken at present.
Zimbabwe
-- BOD has been interested in the diamond potential of Zimbabwe
several years. Significant early stage work has been undertaken to
identify opportunities.
-- The prolific Marange diamond field is a target. BOD has a
joint venture agreement with Vast Resources on a specific
concession in the Marange field. The award of the licence has been
imminent for a period of time. The award will pave the way for
rapid exploration which will include trial mining.
-- Apart from Marange, BOD has continued to examine other brownfield kimberlite opportunities.
Corporate
The company raised GBP250,000 in early 2020 to fund exploration
and for general working capital purposes.
The current global uncertainty as a result of the outbreak and
spread of Covid-19 makes planning very difficult. No one knows how
long the pandemic will last, the real impact on global diamond
markets and the financial system generally. A National Disaster in
respect of Covid-19 has been declared in South Africa and this will
impact the scheduling of our activities in South Africa and
particularly the Marsfontein project in the coming weeks. However,
our operations are flexible, and we plan to return to planned
activity levels in due course as and when conditions allow.
This release has been approved by James Campbell, Managing
Director of Botswana Diamonds plc, a qualified geologist
(Pr.Sci.Nat), a Fellow of the Southern African Institute of Mining
and Metallurgy, a Fellow of the Institute of Materials, Metals and
Mining (UK) and with over 34-years' experience in the diamond
sector.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014. The person who arranged
for the release of this announcement on behalf of the Company was
James Campbell, Director
A copy of this announcement is available on the Company's
website, at www.botswanadiamonds.co.uk
S
John Teeling
Chairman
25(th) March 2020
Enquiries:
Botswana Diamonds PLC
John Teeling, Chairman +353 1 833 2833
James Campbell, Managing Director +27 83 457 3724
Jim Finn, Director +353 1 833 2833
Beaumont Cornish - Nominated Adviser
Michael Cornish
Roland Cornish +44 (0) 020 7628 3396
Beaumont Cornish Limited - Broker
Roland Cornish
Felicity Geidt +44 (0) 207 628 3396
Novum Securities Limited - Joint Broker
Colin Rowbury +44 (0) 20 399 9400
Blytheweigh - PR +44 (0) 207 138 3206
Megan Ray +44 (0) 207 138 3222
Rachael Brookes +44 (0) 207 138 3203
Teneo
Luke Hogg +353 (0) 1 661 4055
Alan Tyrrell +353 (0) 1 661 4055
Thomas Shortall +353 (0) 1 661 4055
www.botswanadiamonds.co.uk
Botswana Diamonds plc
Financial Information (Unaudited)
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
Six Months Six Months Year
Ended Ended Ended
31 Dec 31 Dec
19 18 30 Jun19
unaudited unaudited audited
GBP'000 GBP'000 GBP'000
REVENUE - - -
Cost of sales - - -
-------------------- -------------------- -----------------
GROSS PROFIT - - -
( 194 ( 190 ( 337
Administrative expenses ) ) )
Impairment of exploration and evaluation ( 435
assets - - )
-------------------- -------------------- -----------------
( 194 ( 190 ( 772
OPERATING LOSS ) ) )
( 194 ( 190 ( 772
LOSS BEFORE TAXATION ) ) )
Income tax
expense - - -
-------------------- -------------------- -----------------
( 194 ( 190 ( 772
LOSS AFTER TAXATION ) ) )
Exchange difference on translation ( 133
of foreign operations - - )
TOTAL COMPREHENSIVE INCOME/(LOSS) ( 194 ( 190 ( 905
FOR THE PERIOD ) ) )
==================== ==================== =================
LOSS PER SHARE - basic and
diluted (0.03p) (0.04p) (0.14p)
==================== ==================== =================
CONDENSED CONSOLIDATED BALANCE 31 Dec 31 Dec
SHEET 19 18 30 Jun19
unaudited unaudited audited
ASSETS: GBP'000 GBP'000 GBP'000
NON-CURRENT ASSETS
Intangible
assets 8,267 8,364 8,035
Financial
assets - - -
-------------------- -------------------- -----------------
8,267 8,364 8,035
-------------------- -------------------- -----------------
CURRENT ASSETS
Trade and other receivables 21 12 40
Cash and cash equivalents 13 39 14
-------------------- -------------------- -----------------
34 51 54
TOTAL ASSETS 8,301 8,415 8,089
-------------------- -------------------- -----------------
LIABILITIES:
CURRENT
LIABILITIES
( 425 ( 386 ( 398
Trade and other payables ) ) )
-------------------- -------------------- -----------------
TOTAL ( 425 ( 386 ( 398
LIABILITIES ) ) )
NET ASSETS 7,876 8,029 7,691
==================== ==================== =================
EQUITY
Share capital - deferred
shares 1,796 1,796 1,796
Share capital - ordinary
shares 1,569 1,273 1,441
Share premium 10,418 10,099 10,300
Share based payments
reserve 111 104 111
( 5,035 ( 4,260 ( 4,974
Reserves ) ) )
( 983 ( 983 ( 983
Other reserves ) ) )
-------------------- -------------------- -----------------
TOTAL EQUITY 7,876 8,029 7,691
==================== ==================== =================
CONDENSED CONSOLIDATED STATEMENT OF CHANGES
IN EQUITY
Share
based
Share Share Payment Retained Translation Other Total
Capital Premium Reserves Deficit Reserve Reserve Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
As at 30 June ( 4,070 ( 983
2018 3,069 10,099 104 ) - ) 8,219
Total
comprehensive ( 190 ( 190
loss ) - - )
------------------ --------------- -------------------- ------------------ -------------------- -------------------- -----------------
As at 31
December ( 4,260 ( 983
2018 3,069 10,099 104 ) - ) 8,029
Ordinary
shares
issued 168 201 7 - - - 376
Total
comprehensive ( 581 ( 133 ( 714
loss - ) ) - )
------------------ --------------- -------------------- ------------------ -------------------- -------------------- -----------------
As at 30 June ( 4,841 ( 133 ( 983
2019 3,237 10,300 111 ) ) ) 7,691
Ordinary
shares
issued 128 128 - - - - 256
Share issue ( 10 ( 10
expenses - ) - - - - )
Total
comprehensive ( 194 ( 61
loss - - ) 133 - )
--------------------
As at 31
December ( 5,035 ( 983
2019 3,365 10,418 111 ) - ) 7,876
================== =============== ==================== ================== ==================== ==================== =================
CONDENSED CONSOLIDATED CASH
FLOW Six Months Six Months Year
Ended Ended Ended
31 Dec 31 Dec
19 18 30 Jun19
unaudited unaudited audited
GBP'000 GBP'000 GBP'000
CASH FLOW FROM OPERATING ACTIVITIES
Loss for the ( 194 ( 190 ( 772
period ) ) )
Impairment of exploration and evaluation
assets - - 435
Exchange ( 132
movements ( 4 ) - )
-------------------- -------------------- -----------------
( 198 ( 190 ( 469
) ) )
Movements in Working
Capital 46 99 66
-------------------- -------------------- -----------------
NET CASH USED IN OPERATING ( 91 ( 403
ACTIVITIES ( 152) ) )
-------------------- -------------------- -----------------
CASH FLOWS FROM INVESTING
ACTIVITIES
Exploration costs ( 130 ( 214
capitalised ( 99 ) ) )
-------------------- -------------------- -----------------
NET CASH USED IN INVESTING ( 130 ( 214
ACTIVITIES ( 99 ) ) )
-------------------- -------------------- -----------------
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from share
issue 256 - 370
Share issue
costs ( 10 ) - -
-------------------- -------------------- -----------------
NET CASH GENERATED IN INVESTING ACTIVITIES 246 - 370
-------------------- -------------------- -----------------
( 221 ( 247
NET DECREASE IN CASH AND CASH EQUIVALENTS ( 5 ) ) )
Cash and cash equivalents at beginning
of the period 14 260 260
Effect of foreign exchange
rate changes 4 - 1
CASH AND CASH EQUIVALENT AT THE
OF THE PERIOD 13 39 14
==================== ==================== =================
Notes:
1. INFORMATION
The financial information for the six months ended 31 December
2019 and the comparative amounts for the six months ended 31
December 2018 are unaudited. The financial information above does
not constitute full statutory accounts within the meaning of
section 434 of the Companies Act 2006.
The Interim Financial Report has been prepared in accordance
with IAS 34 Interim Financial Reporting as adopted by the European
Union.
The accounting policies and methods of computation used in the
preparation of the Interim Financial Report are consistent with
those used in the Group 2019 Annual Report, which is available at
www.botswanadiamonds.co.uk
The interim financial statements have not been audited or
reviewed by the auditors of the Group pursuant to the Auditing
Practices board guidance on Review of Interim Financial
Information.
2. DIVID
No dividend is proposed in respect of the period.
3. LOSS PER SHARE
Basic loss per share is computed by dividing the loss after
taxation for the period available to ordinary shareholders by the
weighted average number of ordinary shares in issue and ranking for
dividend during the period.
Diluted loss per share is computed by dividing the loss after
taxation for the period by the weighted average number of ordinary
shares in issue, adjusted for the effect of all dilutive potential
ordinary shares that were outstanding during the period.
The following table sets forth the computation for basic and
diluted earnings per share (EPS):
Six Months Six Months
Ended Ended Year Ended
31 Dec 31 Dec 30 Jun
19 18 19
GBP'000 GBP'000 GBP'000
Numerator
For basic and diluted EPS retained
loss (194) (190) (772)
============== ============== ==============
No. No. No.
Denominator
Weighted average number of ordinary
shares 621,741,536 509,282,508 537,481,761
============== ============== ==============
Loss per share - Basic and Diluted (0.03p) (0.04p) (0.14p)
============== ============== ==============
The following potential ordinary shares are anti-dilutive and
are therefore excluded from the weighted average number of shares
for the purposes of the diluted earnings per share:
No. No. No.
Share options 11,410,000 11,410,000 11,410,000
============== ============== ==============
4. INTANGIBLE ASSETS
31 Dec 31 Dec 30 June
19 18 19
GBP'000 GBP'000 GBP'000
Exploration and evaluation assets:
Cost:
Opening balance 9,299 9,063 9,063
Additions 99 130 369
Exchange variance 133 - (133)
9,531 9,193 9,299
======== ======== ========
Impairment:
Opening balance 1,264 829 829
Provision for impairment - - 435
-------- -------- --------
1,264 829 1,264
======== ======== ========
Carrying Value:
Opening balance 8,035 8,234 8,234
======== ======== ========
Closing balance 8,267 8,364 8,035
======== ======== ========
Exploration and evaluation assets relate to expenditure incurred
in exploration for diamonds in Botswana and South Africa. The
directors are aware that by its nature there is an inherent
uncertainty in exploration and evaluation assets and therefore
inherent uncertainty in relation to the carrying value of
capitalized exploration and evaluation assets.
During the prior year, some licences held by the Group in its
subsidiary company Sunland Minerals (Pty) Ltd were relinquished.
Therefore, the directors decided to impair the costs of exploration
on these licences. Accordingly, an impairment allowance of
GBP435,139 (2018: GBP179,524) had been recorded by the Group in the
prior year.
On 11 November 2014 the Brightstone block was farmed out to BCL
Investments (Proprietary) Limited, a Botswana Company, who assumed
responsibility for the work programme. Botswana Diamonds will
retain a 15% equity interest in the associate.
On 6 February 2017 the Group entered into an Option and Earn-In
Agreement with Vutomi Mining Pty Ltd and Razorbill Properties 12
Pty Ltd (collectively known as 'Vutomi'), a private diamond
exploration and development firm in South Africa.
As at December 31(st) 2019 the group has earned a 40% interest
in Vutomi.
The directors believe that there were no facts or circumstances
indicating that the carrying value of intangible assets may exceed
their recoverable amount and thus no impairment review was deemed
necessary by the directors. The realisation of these intangible
assets is dependent on the successful discovery and development of
economic diamond resources and the ability of the Group to raise
sufficient finance to develop the projects. It is subject to a
number of significant potential risks, as set out below:
-- licence obligations;
-- exchange rate risks;
-- uncertainties over development and operational costs;
-- political and legal risks, including arrangements with
governments for licenses, profit sharing and taxation;
-- foreign investment risks including increases in taxes,
royalties and renegotiation of contracts;
-- title to assets;
-- financial risk management;
-- going concern; and
-- operational and environmental risks.
Included in additions for the year are GBPNil (Jun 2019:
GBP6,951) of share based payments, GBP7,529 (Jun 2019: GBP15,754)
of wages and salaries and GBP37,642 (Jun 2019: GBP74,620) of
directors remuneration. The remaining balance pertains to the
amounts capitalised to the respective licenses held by the
entity.
5. SHARE CAPITAL
Deferred Shares Number Share Capital Share Premium
GBP'000 GBP'000
At 1 July 2018 and 1 July 2019 239,487,648 1,796,157 -
At 30 June 2019 and 31 December 2019 239,487,648 1,796,157 -
============ ============== ==============
Ordinary Shares Number Share Capital Share Premium
GBP'000 GBP'000
At 1 July 2018 509,282,508 1,273 10,099
Issued during the period - - -
At 31 December 2018 509,282,508 1,273 10,099
------------ -------------- --------------
Issued during the period 67,272,727 168 201
At 30 June 2019 576,555,235 1,441 10,300
------------ -------------- --------------
Issued during the period 51,000,000 128 128
Share issue expenses - - (10)
At 31 December 2019 627,555,235 1,569 10,418
============ ============== ==============
Movements in share capital
On 28 January 2019, the Company raised GBP370,000 through the
issue of 67,272,727 new ordinary shares of 0.25p each at a price of
0.55p per share to provide additional working capital and fund
development costs. Each placing share has one warrant attached with
the right to subscribe for one new ordinary share at 0.6p per share
for a period of two years from 23 January 2019.
On 18 July 2019, the Company raised GBP250,000 through the issue
of 50,000,000 new ordinary shares of 0.25p each at a price of 0.50p
per share to provide additional working capital and fund
development costs.
On 18 November 2019 a total of 1,000,000 warrants were exercised
at a price of 0.60p per warrant for GBP6,000.
6. SHARE BASED PAYMENTS
The Group issues equity-settled share-based payments to certain
directors and individuals who have performed services for the
Group. Equity-settled share-based payments are measured at fair
value at the date of grant.
The Group plan provides for a grant price equal to the average
quoted market price of the ordinary shares on the date of
grant.
Warrants
Dec 2019 Jun 2019 Dec 2018
Number of Options Weighted average Number of Options Weighted average Number of Options Weighted average
exercise price in exercise price in exercise price in
pence pence pence
Outstanding
at
beginning
of the
period 67,272,727 0.60 - - 28,298,700 0.85
Issued - - 67,272,727 0.60
Exercised 1,000,000 0.60 -
Expired - - - - (28,298,700) 0.85
Outstanding
at end of
the period 66,272,727 0.60 67,272,727 0.60 - -
In the period to 31 December 2018 the 28,298,700 warrants that
were granted on 22 December 2015 expired.
As part of the placing on 28 January 2019, the Company issued
67,272,727 warrants to each subscriber of the placing shares. Each
placing share has one warrant attached with the right to subscribe
for one new ordinary share at 0.60p per share for a period of two
years from 23 January 2019.
On 18 November 2019 a total of 1,000,000 warrants were exercised
at a price of 0.60p per warrant.
7. POST BALANCE SHEET EVENTS
On 28 January 2020 the Company announced that it had raised
GBP250,000 via the placing of 41,666,667 new ordinary shares at a
placing price of 0.60p per share. Each placing share has one
warrant attached with the right to subscribe for one new ordinary
share at 0.6p per new ordinary share for a period of two years from
28 January 2020.
The net proceeds of the placing will fund ongoing diamond
exploration in South Africa and Botswana and will also provide the
Company with additional working capital.
8. APPROVAL
The Interim Report for the period to 31(st) December 2019 was
approved by the Directors on 25(th) March 2020.
9. AVAILABILITY OF REPORT
The Interim Statement will be available on the website at
www.botswanadiamonds.co.uk
This information is provided by RNS, the news service of the
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of this information may apply. For further information, please
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END
IR PPUWAWUPUGUA
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