TIDMGCM
RNS Number : 8905W
GCM Resources PLC
17 November 2017
17 November 2017
GCM Resources plc
("GCM" or the "Company")
(AIM:GCM)
Final Results for the year ended 30 June 2017
GCM Resources plc (AIM:GCM), a resource exploration and
development company, is pleased to report its preliminary results
for the year ended 30 June 2017.
Highlights:
-- GCM is reshaping the Phulbari Coal and Power Project into a
holistic power solution, to be in line with the objectives of the
Government of Bangladesh;
-- Signed a Memorandum of Understanding with China Gezhouba
Group International Engineering Co Limited ("CGGC") with respect to
a proposed 2,000MW mine-mouth power plant in November 2016;
-- Received a completed technical pre-feasibility study (PFS) on
the proposed power plant from CGGC in July 2017;
-- Discussions with CGGC continue to agree a joint development framework agreement;
-- GCM recorded a loss of GBP1.0 million for the year ended 30
June 2017 (2016: GBP1.0 million)
The Annual Report and Accounts for the year ended 30 June 2017
will be posted on the Company's website today (www.gcmplc.com) and
will shortly be mailed to shareholders. Copies will also be
available on request from the Company.
In the Chairman's Statement Datuk Michael Tang PJN, Executive
Chairman, stated:
"Progress is being made to reposition the Company's mining
project into a holistic power solution, in line with the objectives
of the Government of Bangladesh (Government), which is to
significantly expand power generation in order to support long term
economic growth and social development in the country.
"In November 2016 we were very pleased to begin our strategic
relationship with China Gezhouba Group International Engineering Co
Limited (CGGC) by signing a Memorandum of Understanding (MOU). The
MOU enabled the parties to collaborate in a new proposal to
construct an initial 2,000MW mine-mouth power plant in conjunction
with the Phulbari coal mine.
"CGGC is an internationally recognised engineering company with
infrastructure projects across the world. CGGC's businesses cover
the design, construction, investment and operation in power, water
conservancy, highways, railways, bridges, municipal works,
airports, ports, waterways, industrial and civil buildings, as well
as real estate and coal mining.
"At the beginning of 2017 CGGC began a technical pre-feasibility
study (PFS) on the proposed power plant with the assistance of GCM.
This was successfully completed and announced on 14 July 2017.
"We are honoured to be working with the high calibre CGGC team
and much encouraged by their interest in further developing the
relationship. The parties are currently in discussions to agree a
joint development framework agreement which will set out the
respective roles and responsibilities, and enable the parties to
move forward with the Project.
"By combining the planned coal mine with the proposed 2,000MW
mine-mouth power plant in conjunction with CGGC, we are reshaping
the Phulbari Coal and Power Project to become an integrated power
proposition which we anticipate will be attractive to the
Government.
"An additional 2,000MW to the Bangladesh energy grid would make
a substantial contribution to the country and assist the Government
in meeting its long-term aim of having 57,000 MW of installed power
generating capacity by 2041 from a diversified energy sector. The
Project could support up to a further 4,000MW at the mine-mouth
and/or at other strategic sites within Bangladesh.
"Continuing its focus on minimising costs and conserving cash,
the Group recorded a loss of GBP1.0 million for the year ended 30
June 2017 (2016: GBP1.0 million). Capitalised Project related
expenditure for the year ended 30 June 2017 amounted to GBP1.8
million (2016: GBP0.7 million), which included non-cash expenditure
of GBP1.3 million.
"Looking forward, we recognise the significant challenges ahead
in developing the combined power plant and mine proposal, and
achieving the necessary approvals from the Government, the timing
of which remains in the hands of the authorities. We are determined
to continue adding shareholder value, by pursuing the development
of the Project to the benefit of shareholders, Bangladesh and the
local communities."
The Income Statement, Statement of Comprehensive Income,
Statement of Changes in Equity, Balance Sheet and Cash Flow are
presented on the following pages:
Consolidated Statement of Comprehensive Income
For year ended 30 June
2017 2016
GBP000 GBP000
Operating expenses
Exploration and evaluation
costs (53) (40)
Share based payments - (271)
Administrative expenses (654) (663)
Operating loss (707) (974)
Finance revenue - -
Finance costs (299) (69)
Loss before tax (1,006) (1,043)
Taxation - -
Loss for the year (1,006) (1,043)
Other comprehensive income - -
Total comprehensive income
for the year (1,006) (1,043)
------- --------
Loss per share
Basic (pence per share) (1.6p) (1.7p)
Diluted (pence per share) (1.6p) (1.7p)
Consolidated Statement of Changes in Equity
For year ended 30 June
Share Share Share Convertible Accumulated Total
capital premium based loan losses
account payments equity
not settled component
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Balance at
1 July 2015 6,286 45,286 598 40 (14,580) 37,630
Total comprehensive
loss - - - - (1,043) (1,043)
Drawdown of
convertible
loan - - - 129 - 129
Share based
payments - - 11 - 271 282
Balance at
30 June 2016 6,286 45,286 609 169 (15,352) 36,998
Total comprehensive
loss - - - - (1,006) (1,006)
Share issuances 1,529 879 - - - 2,408
Share based
payments - - 9 - - 9
Transfer of
convertible
loan equity
component on
share issue - - - (169) 169 -
Balance at
30 June 2017 7,815 46,165 618 - (16,189) 38,409
-------- -------- ------------ ----------- ----------- -------
Consolidated Balance Sheet
As at 30 June
2017 2016
GBP000 GBP000
Current assets
Cash and cash equivalents 180 194
Other receivables 52 136
Total current assets 232 330
Non-current assets
Property, plant and equipment 27 29
Intangible assets 40,179 38,387
Total non-current assets 40,206 38,416
Total assets 40,438 38,746
-------- ---------
Current liabilities
Payables (1,028) (684)
Borrowings (1,001) (1,064)
Total current liabilities (2,029) (1,748)
Total liabilities (2,029) (1,748)
-------- ---------
Net assets 38,409 36,998
-------- ---------
Equity
Share capital 7,815 6,286
Share premium account 46,165 45,286
Other reserves 618 778
Accumulated losses (16,189) (15,352)
Total equity 38,409 36,998
-------- ---------
Consolidated Cash Flow Statement
For year ended 30 June
2017 2016
GBP000 GBP000
Cash flows from/(used
in) operating activities
(Loss) before tax (1,006) (1,043)
Adjusted for:
Finance costs 299 69
Share based payments - 271
Other non-cash expenses 50 -
(657) (703)
Movements in working capital:
(Increase)/decrease in operating
receivables (6) 91
Increase/(decrease) in operating
payables 280 223
Cash used in operations (383) (389)
Net cash used in operating
activities (383) (389)
Cash flows from/(used
in) investing activities
Payments for property,
plant and equipment (4) (2)
Payments for intangible
assets (477) (603)
Net cash generated from/(used
in) investing activities (481) (605)
Cash flows from/(used
in) financing activities
Proceeds from borrowing 850 1,019
Net cash from financing
activities 850 1,019
Total increase in cash
and cash equivalents (14) 25
Cash and cash equivalents
at the start of the year 194 169
Cash and cash equivalents
at the end of the year 180 194
------- --------
The audited financial information for the years ended 30 June
2017 and 30 June 2016 contained in this document does not
constitute statutory accounts as defined in the Companies Act 2006.
The comparative financial information is based on the statutory
accounts for the financial year ended 30 June 2016. Those accounts,
upon which the auditors issued an unqualified opinion with emphasis
of matter paragraphs, have been delivered to the Registrar of
Companies. The financial information for the year ended 30 June
2017 has been extracted from the financial statements of GCM
Resources plc which will be delivered to the Registrar of Companies
in due course. The auditors have issued an unqualified opinion with
an emphasis of matter paragraph on the Group's statutory financial
statements for the year ended 30 June 2017. The emphasis of matter
paragraph is in relation to going concern. The preliminary
announcement was approved by the Board of Directors on 17 November
2017.
This announcement contains inside information as defined in
Article 7 of the EU Market Abuse Regulation No 596/2014 and has
been announced in accordance with the Company's obligations under
Article 17 of that Regulation.
For further information:
GCM Resources plc Northland Capital Partners
James Hobson Ltd
Finance Director Nominated Adviser and
+44 (0) 20 7290 1630 Broker
Tom Price
Matthew Johnson
+44 (0) 203 861 6625
GCM Resources plc
Tel: +44 (0) 20 7290 1630
info@gcmplc.com; www.gcmplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
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