TIDMAXM
RNS Number : 0203O
Alexander Mining PLC
30 September 2019
30 September 2019
ALEXANDER MINING PLC
INTERIM REPORT FOR SIX MONTHSED 30 JUNE 2019
Alexander Mining plc ("Alexander" or "the Company"), an AIM
listed mining and mineral processing technologies company,
announces its unaudited results for the six months ended 30 June
2019.
The Company's business objective historically up to the date of
the reporting period has been to become a successful company
focused on the mining and processing of mineralised materials for
the production of base metals, which are integral to the delivery
of technologies and products of the future. This was to be achieved
from the commercialisation of its proprietary mineral processing
technologies and potential strategic partnerships in producing
mines and through equity and/ or royalty positions in advanced
projects.
While the Company's strategy has had some positive progress and
developments, the Board decided that it was necessary to complete a
review of its operations. As a result and as announced on 25
September 2019, it concluded that it was no longer in Shareholders'
interests for the Company to continue to provide financial support
indefinitely for its mineral processing technology activities,
which are carried out by the Company's wholly owned subsidiary,
MetaLeach Limited ("MetaLeach").
Chairman's Statement & Review of the Half-Year
Dear Shareholders and Investors
Herewith I take pleasure on behalf of your Board of Directors in
presenting the Company's unaudited interim results for the
half-year ended 30 June 2019, along with commentary on the
operating environment and related outlook, including details of a
change in Company strategy following a strategic review of the
Company's business by your Board and Management.
The period under review was generally a volatile one for the
metals and mining sector, largely due to concerns about the
direction of the global economy and the USA/China trade war.
Although, in our opinion, the mid- to longer-term outlook
appears positive for Alexander's mineral processing technology, the
Company has had to take a view on the realistic prospect in the
short term of achieving sufficient revenue from licencing its
technology and or consultancy fees to cover its cost base.
Accordingly, as announced on 25 September 2019, the Board
decided to conduct a thorough review of its business activities and
strategy. As a result, the Board concluded that it is no longer in
shareholders' best interests for the Company to continue to provide
financial support indefinitely for its mineral processing
technology commercialisation activities. The Board has therefore
announced that it proposes to dispose of MetaLeach and change the
Company's business strategy. The Company intends to become an AIM
Rule 15 cash shell and to complete a suitable reverse takeover in
accordance with the AIM Rules as soon as practically possible.
Financial
The Company has continued to be assiduous in keeping its
overheads to the minimum necessary, whilst maintaining required
expenditure on business development and intellectual property
protection. The Company's cash position at 30 June 2019 was
GBP195,000. In August 2019, post the period end, the Company raised
GBP475,000 before expenses.
Based on the current budget, the Company should have adequate
working capital through until the end of June 2020.
As usual, I would like to thank you, Alexander's valued
shareholders, for your continuing support and our employees,
directors, consultants and advisers for their continued
commitment.
Alan M. Clegg
Non-Executive Chairman
30 September 2019
For further information, please contact:
Martin Rosser
Chief Executive
Mobile: +44 (0) 7770 865 341
Alexander Mining plc
Tel: +44 (0) 20 7078 9566
Email: mail@alexandermining.com
Website: www.alexandermining.com
Cairn Financial Advisers LLP
Sandy Jamieson/James Caithie
Tel: +44 (0) 20 7213 0880
Turner Pope Investments (TPI) Ltd.
Andy Thacker
Zoe Alexander
Tel: +44 (0) 20 3657 0050
Consolidated income statement
Six months Six months Year ended
ended 30 ended 30 31 December
June 2019 June 2018 2018
GBP'000 GBP'000 GBP'000
--------------------------------------- ----------- ----------- -------------
Continuing operations
Revenue - - -
Cost of sales - - -
--------------------------------------- ----------- ----------- -------------
Gross profit - - -
Administrative expenses (184) (174) (374)
Research and development expenses (51) (103) (140)
Operating loss (235) (277) (514)
Finance income - 1 1
Finance cost - - -
--------------------------------------- ----------- ----------- -------------
Loss before taxation (235) (276) (513)
Income tax expense - - -
--------------------------------------- ----------- ----------- -------------
Loss for the period from continuing
operations (235) (276) (513)
Loss for the period from discontinued
operations - - -
--------------------------------------- ----------- ----------- -------------
Loss for the period (235) (276) (513)
--------------------------------------- ----------- ----------- -------------
Basic and diluted (loss) per share
(pence)
from continuing operations: (0.01) p (0.01) p (0.03) p
All components of profit or loss are attributable to equity
holders of the parent.
Consolidated statement of comprehensive income
Six months Six months Year ended
ended 30 ended 30 31 December
June 2019 June 2018 2018
GBP'000 GBP'000 GBP'000
---------------------------------------- ----------- ----------- -------------
Loss for the period (235) (276) (513)
Other comprehensive income: - - -
Total comprehensive loss for the
period attributable to equity holders
of the parent (235) (276) (513)
---------------------------------------- ----------- ----------- -------------
Consolidated balance sheet
As at 30 As at 30 As at
June 2019 June 2018 31 December
2018
GBP'000 GBP'000 GBP'000
------------------------------- ----------- ----------- -------------
Assets
Property, plant & equipment - - -
Total non-current assets - - -
------------------------------- ----------- ----------- -------------
Trade and other receivables 30 33 33
Cash and cash equivalents 195 662 441
------------------------------- ----------- ----------- -------------
Total current assets 225 695 474
------------------------------- ----------- ----------- -------------
Total assets 225 695 474
------------------------------- ----------- ----------- -------------
Equity attributable to owners
of the parent
Issued share capital 15,352 15,352 15,352
Share premium 14,044 14,044 14,044
Translation reserve - - -
Accumulated losses (29,544) (29,125) (29,323)
------------------------------- ----------- ----------- -------------
Total equity (148) (271) 73
------------------------------- ----------- ----------- -------------
Liabilities
Current liabilities
Trade and other payables 373 424 401
Provisions - - -
------------------------------- ----------- ----------- -------------
Total current liabilities 373 424 401
Total liabilities 373 424 401
------------------------------- ----------- ----------- -------------
Total equity and liabilities 225 695 474
------------------------------- ----------- ----------- -------------
Consolidated statement of cash flows
Six months Six months Year ended
ended 30 ended 30 31 December
June 2019 June 2018 2017
GBP'000 GBP'000 GBP'000
---------------------------------------- ----------- ----------- -------------
Cash flows from operating activities
Operating loss - continuing operations (235) (277) (514)
(Increase) / decrease in trade
and other receivables 4 4 4
Increase / (decrease) in trade
and other payables (29) (78) (101)
Share option & Warrant charge 14 17 56
Net cash outflow from operating
activities (246) (334) (555)
---------------------------------------- ----------- ----------- -------------
Cash flows from investing activities
Interest received - 1 1
Net cash inflow from investing
activities - 1 1
---------------------------------------- ----------- ----------- -------------
Cash flows from financing activities
Proceeds from the issue of share - -
capital -
Proceeds from issue of share options - - -
---------------------------------------- ----------- ----------- -------------
Net cash inflow from financing - -
activities -
---------------------------------------- ----------- ----------- -------------
Net increase / (decrease) in cash
and cash equivalents (246) (333) (554)
Cash and cash equivalents at beginning
of period 441 995 995
Exchange differences - - -
---------------------------------------- ----------- ----------- -------------
Cash and cash equivalents at end
of period 195 662 441
---------------------------------------- ----------- ----------- -------------
Consolidated statement of changes in equity
Share Share premium Shares Translation Accumulated Total
capital to be reserve losses equity
issued
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January
2018 15,352 14,044 - - (28,866) 530
------------------------ --------- -------------- -------- ------------ ------------ --------
Accumulated loss
for period - - - - (276) (276)
Total comprehensive
loss for the
period attributable
to equity holders
of the parent - - - - (276) (276)
--------- -------------- -------- ------------ ------------
Share option
costs - - - - 17 17
Shares issued - - - - - *
Share issue costs - - -
At 30 June 2018 15,352 14,044 - - (29,125) 271
------------------------ --------- -------------- -------- ------------ ------------ --------
Accumulated loss
for period - - - - (237) (237)
Total comprehensive
loss for the
period attributable
to equity holders
of the parent - - - - (237) (237)
------------------------ --------- -------------- -------- ------------ ------------ --------
Share option
and Warrant costs - - - - 39 39
Shares issued - * - - - -
At 31 December
2018 15,352 14,044 - - (29,323) 73
------------------------ --------- -------------- -------- ------------ ------------ --------
Accumulated loss
for period - - - - (235) (235)
Translation Difference - -
--------- -------------- -------- ------------ ------------
Total comprehensive
loss for the
period attributable
to equity holders
of the parent - - - - (235) (235)
------------------------ --------- -------------- -------- ------------ ------------ --------
Share option
and Warrant costs - - - - 14 14
Shares issued - - - - - -
Share issue costs - - - - - -
At 30 June 2019 15,352 14,044 - - 29,544 148
------------------------ --------- -------------- -------- ------------ ------------ --------
Notes to the interim financial information
1. Basis of preparation
The interim financial information has been prepared in
accordance with International Financial Reporting Standards
("IFRSs") in force at the reporting date and their interpretations
issued by the International Accounting Standards Board ("IASB") as
adopted for use within the European Union. The accounting policies,
methods of computation and presentation used in the preparation of
the interim financial information are the same as those used in the
Group's audited financial statements for the year ended 31 December
2018.
The financial information in this statement does not constitute
full statutory accounts within the meaning of Section 434 of the
Companies Act 2006. The financial information for the six months
ended 30 June 2019 and 30 June 2018 is unaudited. The comparative
information for the year ended 31 December 2018 was derived from
the Group's audited financial statements for that period as filed
with the Registrar of Companies. It does not constitute the
financial statements for that period. Those financial statements
received an unqualified audit report, but contained a material
uncertainty related to going concern.
Going Concern
In common with many mining, exploration and intellectual
property development companies, the Company has raised finance for
its activities in discrete tranches to finance its activities for
limited periods. At 30 June 2019, the Company had a cash position
of GBP195,000. On 9 August 2019, the Company announced that it had
successfully placed 2,375,000,000 ordinary shares of 0.001 pence
each at a price of 0.02p per share, raising GBP475,000 before
expenses. The current cash flow forecasts prepared by the directors
indicate that the Company should be able to cover its operating
costs for the twelve months period following publication of these
results, however the minimal headroom in the forecast together with
the uncertainty surrounding the Group's ability to generate
positive operating cash flows and successfully dispose of its
MetaLeach subsidiary or complete a suitable reverse takeover in
accordance with the AIM Rules, indicates a significant risk
relating to going concern. It is currently anticipated that further
funding will be required in the next twelve months.
On this basis, the directors have concluded that it is
appropriate to draw up the interim financial information on the
going concern basis. However, there can be no certainty that the
Group will achieve positive operating cash flows, further funding,
a successful disposal of MetaLeach or completion of a suitable
reverse takeover in accordance with the AIM Rules. This indicates
the existence of a material uncertainty that may cast significant
doubt on the ability of the Company and the Group to continue as a
going concern and therefore, that it may be unable to realise its
assets and discharge its liabilities in the normal course of
business. The interim financial information does not include the
adjustments that would result if the Company and Group were unable
to continue as a going concern.
2. Loss per share
The calculation of loss per share is based on the weighted
average number of shares in issue in the six months to 30 June 2019
of 1,888,730,149 (six months to 30 June 2018: 1,888,730,149 and
year to 31 December 2018: 1,888,730,149) and computed on the
respective loss figures as follows:
6 months 2019 6 Months 2018 Full year 2018
GBP'000 Per share GBP'000 Per share GBP'000 Per share
(Loss) - continuing operations (235) (0.01)p (276) (0.01)p (513) (0.03)p
There is no difference between the diluted loss per share and
the basic loss per share presented. Share options granted to
employees, consultants and directors could potentially dilute basic
earnings per share in the future, but were not included in the
calculation of diluted earnings per share as they were
anti-dilutive for the period presented.
At 30 June 2019, there were 154,200,000 (at 30 June 2018:
150,200,000; at 31 December 2018: 154,200,000) share options in
issue that could have a potentially dilutive effect on the basic
earnings per share in the future.
At 30 June 2019, there were 282,359,373 (at 30 June 2018:
282,359,373; at 31 December 2018: 282,359,373) share warrants in
issue that could have a potentially dilutive effect on the basic
earnings per share in the future.
3. Share Capital
On 28 June 2019, at a General Meeting of the Company,
shareholders approved capital restructure proposals whereby each of
the existing issued shares of 0.1p each in the capital of the
Company were subdivided and converted into one new ordinary share
of 0.001p and 99 new deferred shares of 0.001p, and, each of the
existing deferred shares of 9.9p each in the capital of the Company
which came into existence in 2012 were subdivided into 9,900 new
deferred shares of 0.001p each
The new ordinary shares have the same rights and benefits of the
previously existing ordinary shares. The number of new ordinary
shares in issue following the capital re-organisation was unchanged
from the number of existing ordinary shares in issue immediately
prior to the capital re-organisation.
The new deferred shares will not be admitted to trading on AIM,
have only very limited rights on a return of capital and are
effectively valueless and non-transferable. The Directors consider
that the deferred shares have no effect on the respective economic
interests of the shareholders. No share certificates have been
issued for the deferred shares.
The change in the Company's share capital structure during the
reporting period occurred as follows:
Ordinary shares Number of shares Share Share
capital premium
Balance as at 1 January 2019 1,888,730,149 1,888,730 14,044,441
Transfer to deferred share capital
on 28 June 2019 (1,869,843)
Balance at 30 June 2019 1,888,730,149 18,887 14,044,441
===================================== ================= ============== ==========
Deferred shares Deferred share
Number of shares capital
Balance as at 1 January 2019 135,986,542 13,462,667
------------------------------------- ----------------- --------------
Sub-division of each deferred
shares to 9,900 new deferred shares
on 28 June 2019 1,346,266,765,800 13,462,667
------------------------------------- ----------------- --------------
Transfer from ordinary share capital
on 28 June 2018 186,984,284,751 1,869,843
------------------------------------- ----------------- --------------
Balance at 30 June 2019 1,533,251,050,551 15,332,510
===================================== ================= ==============
4. Share options and Warrants
All Share Option costs incurred are allocated to Accumulated
Losses.
The Company had a total of 154,200,000 Share Options in issue
during the period (12,900,000 with exercise prices of 4.92p per
share and a final exercise date of 22 December 2020, 43,300,000
with and exercise price of 0.22p per share and a final exercise
date of 28 July 2026, and 98,000,000 with an exercise price of
0.15p per share and a final exercise date of 28 July 2026),
representing 6.63per cent of the issued share capital of the
Company on a fully diluted basis. Share option charges for the six
months to 30 June 2019 amounted to GBP8,311 (2018: GBP10,005).
The Company had a total of 47,359,375 warrants in issue during
the period for the provision of Broker services (7,359,375 with an
exercise price of 0.4p per share and a final exercise date of 8
October 2019, 40,000,000 with an exercise price of 0.15p per share
and a final exercise date of 22 November 2020. Warrant charges for
the six months to 30 June 2019 amounted to GBP5,597 (2018:
GBP6,834).
The Company had a total of 34,999,998 warrants in issue during
the period granted to subscribers of the 2 October 2015 placing
with an exercise price of 0.45 pence per share, having a final
exercise date of 8 October 2019. No charge was made to equity for
the six months ending 30 June 2019 (2018: GBPnil).
The Company had a total of 200,000,000 warrants in issue during
the period granted to subscribers of the 22 November 2017 placing
with an exercise price of 0.225 pence per share and a final
exercise date of 22 November 2019.
5. Post balance sheet events:
On 11 July 2019, the Company issued a corporate update including
a report that the Company has either paid or has agreed waiver of
payment on all amounts outstanding to current and former directors
of the Company in respect of deferred payments of directors' fees
identified in note 20 and included under Trade and Other Payables
(note 14) of the Annual Report and Accounts for the year ending 31
December 2018. The total amount outstanding of GBP300,728 as at 31
December 2018 has been reduced in full to zero.
On 9 August 2019, Alexander announced that it had successfully
placed 2,375,000,000 ordinary shares of 0.001 pence each ("Ordinary
Shares") at a price of 0.02p per share (the "Placing Shares"),
raising GBP475,000 before expenses (the "Placing"), through its
sole broker and placing agent Turner Pope Investments (TPI) Ltd
("TPI"). As part of TPI's commission arrangements, the Company
agreed to issue 118,750,000 Ordinary Shares to TPI for their
fundraising services (the "Commission Shares").
The Company also announced the proposed board appointment of
Nigel Burton as a Non-Executive Director of the Company, subject to
the satisfactory completion of regulatory due diligence checks.
In addition, the Company also agreed to issue TPI with a warrant
to subscribe in cash for up to 142,500,000 Ordinary Shares in the
Company, which can be exercised at a price of 0.025p per Ordinary
Share until the second anniversary following Admission of the
placing shares.
On 16 September 2019, the Company confirmed the appointment of
Dr Nigel Burton as a Non-Executive Director of the Company.
On 25 September 2019, the Company announced the results of a
review of its operations and had concluded that it is no longer in
Shareholders' interests for the Company to continue to provide
financial support indefinitely for its mineral processing
technology activities, which are carried out by the Company's
wholly owned subsidiary, MetaLeach Limited ("MetaLeach"). It
further stated that "The Board is therefore proposing to dispose of
MetaLeach and change the Company's business strategy. The Company
intends to become an AIM Rule 15 cash shell and to complete a
suitable reverse takeover in accordance with the AIM Rules."
Copies of these announcements are available to view on the
Company's website at www.alexandermining.com.
Disclaimers
Neither the contents of the Company's website nor the contents
of any website accessible from hyperlinks on the Company's website
(or any other website) is incorporated into, or forms part of, this
announcement.
This news release contains forward looking or future-oriented
financial information, being information, which is not historical
fact, including, without limitation, statements regarding potential
results of metallurgical testwork, anticipated applications for the
Company's intellectual property and discussions of future plans and
objectives. Although the Company believes that the expectations
reflected by such information are reasonable, these statements are
based on assumptions and factors concerning future events that may
prove to be inaccurate. Such statements are necessarily based upon
a number of estimates and assumptions based on information
available to the Company about itself and the business in which it
operates. Information used in developing forward-looking
information has been acquired from various sources including third
party consultants, suppliers, regulators and other sources and is
subject to numerous risks and uncertainties that could cause actual
results and future events to differ materially from those
anticipated or projected. Important factors that could cause actual
results to differ materially from the Company's expectations are
the continuing availability of capital resources to fund the
commercialisation of Alexander's technologies; continued positive
results from trials and applications of Alexander's AmmLeach(R) and
HyperLeach(R) technologies and other factors as disclosed in
Company documents filed from time to time. Management uses
forward-looking statements because it believes they provide useful
information to the shareholders with respect to proposed
transactions involving Alexander, and cautions readers that the
information may not be appropriate for other purposes and should
not be read as guarantees of future performance or results. The
Company disclaims any intention or obligation to revise or update
such statements unless required by law.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR BUGDCGDDBGCR
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