TIDMMTL
RNS Number : 3201L
Metals Exploration PLC
30 September 2016
30 September 2016
METALS EXPLORATION PLC
INTERIM RESULTS FOR THE SIX MONTHSED 30 JUNE 2016
Metals Exploration plc (AIM: MTL) ("Metals Exploration" or "the
Company"), the natural resources exploration and development
company with assets in the Pacific Rim region, is pleased to
announce its interim results for the six months ended 30 June
2016.
Chairman's Statement
It is my pleasure to report the interim financial position of
the Runruno Gold project for the six month period ended 30 June
2016. The Runruno project achieved its first gold pour on 13 July
2016 as part of the test run including debugging ("Test Run") phase
of the ore commissioning operations. A number of gold pours have
been completed since that date but no gold sales have been achieved
due to limitations on the sale of commercial products during the
Test Run phase. Pursuant to the Company's Financial or Technical
Assistance Agreement ("FTAA"), and so as to be able to commence the
process of gold export and first sales, the Company declared the
commencement of Commercial Production ("Declaration") on 9
September 2016.
The conditions attached to lifting the 2015 Residual Storage
Impoundment ("RSI") partial suspension order are expected to be
completed during October 2016. Mining operations and the gold
processing and recovery circuits are in the ramp up phase which is
expected to be completed by the end of November 2016.
The Runruno project achieved the international environment
accreditation ISO 14001:2015 in July, a requirement of all
operating mines in the Philippines.
Debt restructuring discussions are ongoing with Hongkong and
Shanghai Banking Corporation Limited and BNP Paribas (the
"Lenders") with the objective of realigning the economic
deliverables of the Project with the capital and interest
repayments profile.
Commercial Operations
The FTAA defines several project stages (known as periods) which
must be observed for a mining project to proceed into production
being: (i) Exploration, (ii) Pre-feasibility study, (iii)
Feasibility study, (iv) Development and Construction and (v)
Operating. Each stage is prescriptive requiring compliance with
various activities, declarations, verifications and undertakings
which are obligatory. The Runruno Gold Project (the "Project")
declared to the Mines and Geosciences Bureau ("MGB") on 9 September
2016 that it has commenced Commercial Operations, which has the
effect of triggering the transition of the Project from the
Development and Construction stage to the Operating stage. The Test
Run phase of commissioning previously undertaken by the company
fell within the Development and Construction stage of the FTAA. The
Project is now awaiting the approval from the MGB that it has
commenced the Operating stage.
On approval by the MGB that the Project has entered the
Operating stage the date of the Declaration, 9 September 2016 (the
"Date"), is significant for the following reasons:
i. Defined items of expenditure incurred by FCF Minerals
Corporation ("FCF" the Company's 100% owned Philippine subsidiary)
for the benefit of the FTAA Contract Area from the date of filing
the FTAA (19 September 2009) up to the Date comprise the
'Pre-Operating Expenses'.
ii. From the Date the five year Recovery Period commences
wherein the 'Pre-Operating Expenses' are recovered prior to the
payment of the Additional Government Share; which will align the
Government and FCF sharing the Project's Net Mining Revenues
equally, 50%.
The MGB is currently reviewing the Company's Declaration. It is
expected that the first export will take place in early October
2016 with revenues received shortly after the export of gold
doré.
Process Plant and ramp up phase
On 13 June 2016 the Project announced that it had achieved its
first gold pour from its gravity circuit. Since that date there
have been several other gold pours from recoveries out of the
gravity circuit. In addition there have been a number of gold pours
from recoveries out of the 'Carbon in Leach' ("CIL") circuit both
before the BIOX(R) (Biological Oxidation) feed to the CIL was
operational, and subsequently since the circuit was commissioned.
The BIOX(R) circuit is now being ramped up and optimised which will
take place over a two month period.
After commencing ore commissioning activities early in May 2016,
during the last week of June 2016 and into early July 2016 milling
activities were suspended due to the discovery of an issue with a
feed end trunnion bearing of the mill requiring repair.
Unfortunately the mill was out of service for nearly four weeks
before replacement parts were delivered to site and the repairs
made. Prior to the trunnion bearing incident the mill had been
commissioned and was ramping up towards its design parameters.
By the middle of July 2016 the mill was back in commission and
the Test Running and ramp-up process resumed and continued through
to 9 September 2016, when the Project made its Declaration. The
mill is now achieving design parameters. Weekly gold recoveries and
pours have occurred since the mill was re-commissioned.
The BIOX(R) circuit is in ramp-up phase and the initial levels
of biological oxidation activity are favourable but require further
time to generate activation levels sufficient to provide design
recoveries and throughput.
Residual Storage Impoundment
On 21 October 2015 the MGB suspended construction works on the
Residual Storage Impoundment ("RSI") because of water damage caused
by Typhoon Lando (Koppu). This included suspension to certain works
in the Malilibeg Dump Site and the tailings pipeline bench areas.
The Project was directed to undertake rehabilitation and
enhancement works in these areas before the suspension order would
be lifted. The rehabilitation works were completed in early 2016
and the enhancement works had advanced sufficiently for the MGB to
lift the suspension order. However, as announced by the Company on
25 April 2016 there were ongoing performance monitoring and
conditions attached to lifting the order.
The Project should be fully compliant with all of the additional
conditions included in lifting the order during October 2016. The
main work carried out to the RSI in compliance with the conditions
of lifting is the construction of an 'over the wall' spill way,
capable of managing a 'probable maximum flood' event. The spillway
has been designed in such a way that as the routine ongoing RSI
construction works advance the spillway will be raised through each
stage of the build.
Mining
During 2016 most of the Project's mining activity has been
focused on the enhancement works in the RSI while supplying
sufficient ore for the Processing Plant operations. Once the
Project has been validated by the MGB as having commenced the
'operating' stage the mine will ramp up fully to design production
rates.
The completion of the RSI works associated with the MGB lifting
order will once again open up the RSI area for the disposal of mine
waste which will support the ramp up of mining operations to design
rates.
ISO 14001:2015 Environment
An MGB requirement of all operating mines in the Philippines is
to obtain the international environmental standard of ISO 14001.
FCF commenced working towards this accreditation in late 2015 and
achieved the required accreditation during July 2016. The
certificate authenticating its accreditation was awarded in August
2016 and marks an important milestone and achievement for the
Project. FCF has consistently upheld the values of responsible
mining and the Project has embraced ISO 14001 in its daily working
culture and proud to have met the environmental management
standards required.
Finances
Project capital expenditure:
At the end of August 2016 capital expenditure is only being
incurred on the enhancement works in the RSI and a summary of the
capital expenditure costs of the Project is as follows:
Budget Expenditure to date Forecast at completion
------------- -------------------- -----------------------
US $ US $ US $
Mining $19,703,614 $18,371,768 $18,371,768
------------------------------ ------------- -------------------- -----------------------
Process Plant $80,801,822 $85,582,688 $85,583,017
------------------------------ ------------- -------------------- -----------------------
Residual Storage Impoundment $12,240,028 $28,045,955 $31,745,955
------------------------------ ------------- -------------------- -----------------------
On-site infrastructure $14,526,276 $13,744,584 $13,744,584
------------------------------ ------------- -------------------- -----------------------
Off-site infrastructure $5,069,940 $3,785,783 $3,785,783
------------------------------ ------------- -------------------- -----------------------
Indirect costs $10,413,578 $13,837,509 $14,040,852
------------------------------ ------------- -------------------- -----------------------
Owners costs $23,006,717 $32,222,549 $32,229,647
------------------------------ ------------- -------------------- -----------------------
VAT contingency $4,690,923 $7,278,869 $7,278,869
------------------------------ ------------- -------------------- -----------------------
Project contingency $12,311,102 $0 $0
------------------------------ ------------- -------------------- -----------------------
Project related costs $182,764,000 $202,869,705 $206,780,475
------------- -------------------- -----------------------
At 30 June 2016 there were outstanding capital commitments
amounting to GBP157k (US $211k) but it is expected a further
GBP2.75 million (US $3.7 million) will be required to complete the
enhancement works in the RSI and finalise the capital spend on the
project. This will bring the total capital spend on the
construction of the Project to $206,780,475.
Facility Agreement capital and interest payments:
On 31 March 2016 the first capital payment amount of US $2.0
million was paid to the lenders together with an interest payment
amounting to US $32,825. The next scheduled calculation date of 30
June 2016 and a capital payment of US $15.0 million was due to be
paid but which has been waived until 31 October 2016. An interest
payment of US $2,763,308 was however paid on the calculation date
of 30 June 2016. One of the conditions applicable to waiving the US
$15.0 million capital payment is that the interest associated with
this principal is paid at the end of each month. Associated
interest of $75,041 and US $85,878 was paid at the end of July 2016
and August 2016 respectively. The total principal and interest
payments paid by FCF to the Lenders in the Facility Agreement
amounts to US $10,190,066 and is represented as follows:
Calculation $83m facility, $75m facility, $8m facility, Rescheduling Total principal
date principal interest interest penalty and interest
repaid paid paid
------------- --------------- --------------- -------------- ------------- ----------------
US $ US $ US $ US $ US $
------------- --------------- --------------- -------------- ------------- ----------------
31/12/2014 $842,987 $842,987
------------- --------------- --------------- -------------- ------------- ----------------
30/06/2015 $1,607,965 $1,607,965
------------- --------------- --------------- -------------- ------------- ----------------
23/10/2015 $400,000 $400,000
------------- --------------- --------------- -------------- ------------- ----------------
31/12/2015 $1,964,219 $247,399 $170,444 $2,382,062
------------- --------------- --------------- -------------- ------------- ----------------
31/03/2016 $2,000,000 $27,658 $5,167 $2,032,825
------------- --------------- --------------- -------------- ------------- ----------------
30/06/2016 $2,081,027 $268,947 $413,334 $2,763,308
------------- --------------- --------------- -------------- ------------- ----------------
31/07/2016 $62,124 $12,917 $75,041
------------- --------------- --------------- -------------- ------------- ----------------
31/08/2016 $72,128 $13,750 $85,878
------------- --------------- --------------- -------------- ------------- ----------------
$2,000,000 $6,658,108 $516,346 $1,015,612 $10,190,066
=============== =============== ============== ============= ================
On 19 October 2015 FCF entered into an Amendment deed to the
Finance Facility under which the principal sums due were
rescheduled. The benefit of obtaining the rescheduled dates was at
a cost of US $1.25m of which US $400,000 was paid on signing the
agreement on 23 October 2015. The remaining US $825,000 is
recovered through a 1% interest penalty on interest payments due on
the US $75 million senior facility and US $8 million cost overrun
facility. To date US $615,612 has been recovered leaving a further
US $209,388 still to recover from future interest payments.
Under the Amendment Deed to the Finance Facility there was a
principal payment of US $15.0 million due on 30 June 2016 but due
to the lack of cash flow received from zero sales of gold doré at
that point in time it was agreed to waive the payment to a later
date. FCF has an agreement with the Lenders that the US $15.0
million capital payment due 30 June 2016 is waived until 31 October
2016 or upon successful completion of the current debt rescheduling
discussions, whichever arrives soonest.
Forward gold sales hedging contracts:
The two quarterly forward gold sales hedging commitments up to
30 June 2016, with Hongkong and Shanghai Banking Corporation
Limited ("HSBC") and BNP Paribas ("BNPP") were closed out early
during 2016. There were four contracts each for 3,750 ounces of
gold and the strike price realised for each contract resulted in
all four contracts being 'in the money'. The contracts settled at
their contracted settlement dates to provide the following income
stream to the Runruno Project:
Forward
Ounces Forward Strike In the
of Settlement Price Price Money
Lender gold Date by Contract achieved Amount
-------- ------- -----------
US $ US $ US $
-------- ------- ----------- ------------- ---------- ------------
HSBC 3,750 04/04/2016 $1,293.45 $1,270.51 $86,000.00
-------- ------- ----------- ------------- ---------- ------------
BNPP 3,750 04/04/2016 $1,287.49 $1,271.60 $59,587.50
-------- ------- ----------- ------------- ---------- ------------
HSBC 3,750 05/07/2016 $1,293.45 $1,231.99 $230,467.50
-------- ------- ----------- ------------- ---------- ------------
BNPP 3,750 05/07/2016 $1,287.49 $1,231.66 $209,373.75
-------- ------- ----------- ------------- ---------- ------------
15,000 $585,428.75
======= ============
The two remaining quarterly forward gold sales hedging
commitments in 2016 were also closed out early and the result was
that the four contracts are also 'in the money' and will settle at
their contracted settlement dates to provide the following income
streams to the Runruno Project:
Forward
Ounces Forward Strike In the
of Settlement Price Price Money
Lender gold Date by Contract achieved Amount
-------- ------- -----------
US $ US $ US $
-------- ------- ----------- ------------- ---------- ------------
HSBC 3,750 04/10/2016 $1,281.38 $1,234.15 $177,093.75
-------- ------- ----------- ------------- ---------- ------------
BNPP 3,750 04/10/2016 $1,287.49 $1,233.67 $201,810.00
-------- ------- ----------- ------------- ---------- ------------
HSBC 3,750 04/01/2017 $1,281.38 $1,236.40 $168,656.25
-------- ------- ----------- ------------- ---------- ------------
BNPP 3,750 04/01/2017 $1,287.49 $1,235.77 $193,935.00
-------- ------- ----------- ------------- ---------- ------------
15,000 $741,495.00
======= ============
A total of twelve forward gold sales contracts have been closed
out for a total of 45,000 ounces of gold and this leaves a balance
of twelve forward gold sales contracts (six with HSBC and six with
BNPP) still to settle, as follows:
Forward Forward
Ounces Price Price
Fixing Settlement of by Contract by Contract
date Date gold - HSBC - BNPP
------------ ------------ -------
US $ US $
31/03/2017 04/04/2017 7,500 $1,281.38 $1,287.49
------------ ------------ ------- ------------- -------------
30/06/2017 05/07/2017 7,500 $1,281.38 $1,287.49
------------ ------------ ------- ------------- -------------
29/09/2017 03/10/2017 7,500 $1,286.88 $1,287.49
------------ ------------ ------- ------------- -------------
29/12/2017 03/01/2018 7,500 $1,286.88 $1,287.49
------------ ------------ ------- ------------- -------------
30/03/2018 04/04/2018 7,500 $1,286.88 $1,287.49
------------ ------------ ------- ------------- -------------
29/06/2018 03/07/2018 7,500 $1,286.88 $1,287.49
------------ ------------ ------- ------------- -------------
45,000
=======
Private share placings:
The Company had three occasions during 2016 to approach its
major shareholders to offer private share placements at various
intervals, to raise working capital for short term liquidity gaps.
The shortfall in cash causing the liquidity gaps had arisen because
of delays in realising sustainable cash flow from sales of gold
doré. The first of these occasions was in March 2016 where a total
of GBP4.3 million (US $6.2 million) was successfully raised via the
issue of 148,300,536 new ordinary shares of 1 pence each at a
placing price of 2.9 pence per share. Four of the Company's major
shareholders took part in the private placing as follows:
PRIVATE SHARE PLACEMENT MARCH 2016
-------------------------------------------------------------------------------------------------------
SHAREHOLDER CURRENT SHARES % NEW SHARES NEW REGISTER % GBP
----------------------- --------------- ------- ------------ -------------- ------- -------------
MTL (Luxembourg) Sarl 740,905,659 46.80% 85,431,490 826,337,149 47.73% GBP2,477,513
----------------------- --------------- ------- ------------ -------------- ------- -------------
Runruno Holdings Ltd 300,407,305 18.98% 34,639,017 335,046,322 19.35% GBP1,004,531
----------------------- --------------- ------- ------------ -------------- ------- -------------
Baker Steel CM LLP(1) 141,922,845 8.97% 16,658,476 158,581,321 9.16% GBP483,096
----------------------- --------------- ------- ------------ -------------- ------- -------------
Investec Wealth 105,297,639 6.65% 11,571,553 116,869,192 6.75% GBP335,575
----------------------- --------------- ------- ------------ -------------- ------- -------------
Others 294,471,897 18.60% 0 294,471,897 17.01% GBP0
----------------------- --------------- ------- ------------ -------------- ------- -------------
Total 1,583,005,345 148,300,536 1,731,305,881 GBP4,300,715
=============== ============ ============== =============
The second occasion occurred in July 2016 where a total of
GBP3.8 million (US $5.0 million) was successfully raised via the
issue of 76,128,414 new ordinary shares of 1 pence each at a
placing price of 5.0 pence per share. Four of the Company's major
shareholders took part in the private placing as follows:
PRIVATE SHARE PLACEMENT - JULY 2016
-------------------------------------------------------------------------------------------------
CURRENT NEW
SHAREHOLDER SHARES % SHARES NEW REGISTER % GBP
------------------ -------------- ------- ----------- -------------- -------- -------------
MTL (Luxembourg)
Sarl 826,337,149 47.73% 41,796,379 868,133,528 48.03% GBP2,089,819
------------------ -------------- ------- ----------- -------------- -------- -------------
Runruno Holdings
Ltd 335,046,322 19.35% 16,946,743 351,993,065 19.47% GBP847,337
------------------ -------------- ------- ----------- -------------- -------- -------------
Ruffer LLP 200,455,373 11.58% 10,139,093 210,594,466 11.65% GBP506,955
------------------ -------------- ------- ----------- -------------- -------- -------------
Baker Steel
CM LLP(1) 143,261,291 8.27% 7,246,199 150,507,490 8.33% GBP362,310
------------------ -------------- ------- ----------- -------------- -------- -------------
Others 226,205,746 13.07% 226,205,746 12.52% GBP0
------------------ -------------- ------- ----------- -------------- -------- -------------
Total 1,731,305,881 76,128,414 1,807,434,295 100.00% GBP3,806,421
============== =========== ============== =============
The third occasion occurred during September 2016 where a total
of GBP4.85 million (US $6.4 million) was successfully raised via
the issue of 97,002,174 new ordinary shares of 1 pence each at a
placing price of 5.0 pence per share. Six of the Company's
shareholders took part in the private placing as follows:
PRIVATE SHARE PLACEMENT - SEPTEMBER 2016
--------------------------------------------------------------------------------------------------
CURRENT NEW
SHAREHOLDER SHARES % SHARES NEW REGISTER % GBP
-------------------- -------------- ------- ----------- -------------- ------- -------------
MTL (Luxembourg)
Sarl 868,133,528 48.03% 56,552,267 882,889,416 48.29% GBP2,827,613
-------------------- -------------- ------- ----------- -------------- ------- -------------
Runruno Holdings
Ltd 351,993,065 19.47% 22,931,314 357,977,636 19.58% GBP1,146,566
-------------------- -------------- ------- ----------- -------------- ------- -------------
Baker Steel
CM LLP(1) 149,907,490 8.29% 6,268,119 206,723,492 11.31% GBP313,406
-------------------- -------------- ------- ----------- -------------- ------- -------------
Investec Wealth 119,033,014 6.59% 7,000,474 150,261,765 8.22% GBP350,024
-------------------- -------------- ------- ----------- -------------- ------- -------------
Lynchwood Nominees 2,633,783 0.15% 3,750,000 3,750,000 0.21% GBP187,500
-------------- ------- -------------
HSBC Marking
Name Nominees 5,000,756 0.28% 500,000 500,000 0.03% GBP25,000
-------------- ------- -------------
Others 310,732,659 17.19% 226,205,746 12.37% GBP0
-------------------- -------------- ------- ----------- -------------- ------- -------------
Total 1,807,434,295 97,002,174 1,828,308,055 GBP4,850,109
============== =========== ============== =============
Notes to share placing tables:
(1) Baker Steel CM LLP - Baker Steel Capital Managers LLP
(acting on behalf of various Funds for which it acts as full
discretionary Investment Manager).
Cash held by the Group after the September 2016 private share
placing is GBP5.3 million (US$6.9 million). In addition the Runruno
project is holding about US $4 million of physical gold.
Ian Holzberger
Executive Chairman
CONDENSED CONSOLIDATED STATEMENT OF TOTAL COMPREHENSIVE INCOME
for the six months ended 30 June 2016
6 month period 6 month period Year
ended ended ended
30 June 30 June 31 December
2016 2015 2015
(unaudited) (unaudited) (audited)
Notes GBP GBP GBP
Continuing Operations
Revenue - - -
Cost of sales - - -
-------------------------- -------------------------- --------------------------
Gross loss - - -
Administrative
expenses (3,781,295) (3,002,872) (5,206,287)
-------------------------- -------------------------- --------------------------
Operating loss (3,781,295) (3,002,872) (5,206,287)
-------------------------- -------------------------- --------------------------
Finance income and
similar items 207 281 1,028
Finance costs (921,079) (7,487) (2,898,071)
Fair value
(loss)/gain on
forward sales
contracts 3 (11,438,864) 1,769,956 8,511,399
Fair value
(loss)/gain on
interest rate swaps 3 (114,937) (23,778) (146,101)
Share of losses of
associates (12,440) (15,252) (26,325)
-------------------------- -------------------------- --------------------------
(Losses)/gains before
tax (16,268,408) (1,279,152) 235,643
Taxation 3,816,934 (666,326) (2,384,810)
-------------------------- -------------------------- --------------------------
Losses for the period (12,451,474) (1,945,478) (2,149,167)
Other comprehensive
income:
Items that may be re-classified subsequently to profit or
loss:
Exchange differences
on translating
foreign operations 8,957,921 (2,695,317) 182,115
Total comprehensive
loss for the period (3,493,553) (4,640,795) (1,967,052)
-------------------------- -------------------------- --------------------------
Loss for the period
attributable to:
Equity holders of the
parent (12,451,474) (1,945,478) (2,149,167)
========================== ========================== ==========================
Total comprehensive
loss attributable to:
Equity holders of the
parent (3,493,553) (4,640,795) (1,967,052)
========================== ========================== ==========================
Loss per share:
Basic and diluted 4 (0.751)p (0.141)p (0.151)p
CONDENSED CONSOLIDATED INTERIM BALANCE SHEET
as at 30 June 2016
As at 30 June As at 30 June As at 31 December
2016 2015 2015
Unaudited Unaudited Audited
GBP GBP GBP
Non-current assets
Property, plant and
equipment 170,040,927 131,437,484 148,012,151
Goodwill 1,010,816 1,010,816 1,010,816
Other intangible assets 8,283,267 6,994,871 7,436,054
Derivative asset - 4,170,473 7,402,121
Investment in associate
companies 110,860 108,935 97,862
Trade and other receivables 2,595,900 1,847,441 2,160,956
182,041,770 145,570,020 166,119,960
-------------------------- -------------------------- --------------------------
Current assets
Derivative asset 551,865 1,615,250 4,010,014
Trade and other receivables 791,422 1,088,079 871,115
Cash and cash equivalents 1,585,249 10,352,286 10,969,449
2,928,536 13,055,615 15,850,578
-------------------------- -------------------------- --------------------------
Non-current liabilities
Loans (30,923,944) (31,177,028) (37,895,318)
Derivative liability (1,189,512) (182,207) (80,386)
Deferred tax liabilities (632,553) (2,441,912) (4,270,103)
Provision for mine
rehabilitation (1,458,795) (1,236,307) (1,324,736)
(34,204,804) (35,037,454) (43,570,543)
-------------------------- -------------------------- --------------------------
Current liabilities
Derivative liability (482,842) - -
Trade and other payables (4,063,060) (4,036,088) (4,790,342)
Loans - current portion (33,491,712) (16,542,913) (21,685,730)
(38,037,614) (20,579,001) (26,476,072)
-------------------------- -------------------------- --------------------------
Net assets 112,727,888 103,009,180 111,923,923
========================== ========================== ==========================
Equity
Share capital 17,313,059 13,749,721 15,830,054
Share premium account 131,566,251 124,591,071 128,751,738
Shares to be issued reserve 3,652,155 3,652,155 3,652,155
Acquisition of
non-controlling interest
reserve (3,785,077) (3,785,077) (3,785,077)
Translation reserve 12,492,610 657,257 3,534,689
Profit and loss account (48,511,110) (35,855,947) (36,059,636)
Equity attributable to
equity holders of the
parent 112,727,888 103,009,180 111,923,923
========================== ========================== ==========================
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY
for the six months ended 30 June 2016
Share Share premium Shares to be Translation Acquisition of Profit and loss Total equity
capital account issued reserve reserve non-controlling account
interest reserve
GBP GBP GBP GBP GBP GBP GBP
Balance at 1
January 2016 15,830,054 128,751,738 3,652,155 3,534,689 (3,785,077) (36,059,636) 111,923,923
------------------- ----------------------------- ----------------------------- ----------------------------- ----------------------------- ----------------------------- ---------------
Exchange
differences on
translating
foreign
operations - - - 8,957,921 - - 8,957,921
Loss for the
period - - - - - (12,451,474) (12,451,474)
------------------- ----------------------------- ----------------------------- ----------------------------- ----------------------------- ----------------------------- ---------------
Total
comprehensive
income for
the period - - - 8,957,921 - (12,451,474) (3,493,553)
Issue of equity
share capital 1,483,005 2,817,710 - - - - 4,300,715
Share issue
expenses - (3,197) - - - - (3,197)
Balance at 30
June 2016
(unaudited) 17,313,059 131,566,251 3,652,155 12,492,610 (3,785,077) (48,511,110) 112,727,888
------------------- ----------------------------- ----------------------------- ----------------------------- ----------------------------- ----------------------------- ---------------
Equity is the aggregate of the following:
-- Share capital; being the nominal value of shares issued.
-- Share premium account; being the excess received over the
nominal value of shares issued less direct issue costs.
-- Shares to be issued reserve; being the credit side of the
entry relating to the expense recognised in the income statement
for share based remuneration.
-- Translation reserve; being the foreign exchange differences
on the translation of foreign subsidiaries.
-- Acquisition of non-controlling interests reserve; being an
acquisition of 15% of FCF Minerals Corporation's shares after
previous acquisitions which had provided the Group with control of
the board of the subsidiary company.
-- Profit and loss account; being the cumulative loss attributable to equity shareholders.
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY
for the six months ended 30 June 2015
Share Share Shares Translation Acquisition Profit Total equity
capital premium to reserve of and
account be non-controlling loss
issued interest account
reserve reserve
GBP GBP GBP GBP GBP GBP GBP
Balance as at
1 January
2015 13,749,721 124,591,071 3,652,155 3,352,574 (3,785,077) (33,910,469) 107,649,975
Exchange
differences
on
translating
foreign
operations - - - (2,695,317) - - (2,695,317)
Loss for the
period - - - - - (1,945,478) (1,945,478)
---- ---- ---- ---- ---- ---- ----
Total
comprehensive
loss for the
period - - - (2,695,317) - (1,945,478) (4,640,795)
---- ---- ---- ---- ---- ---- ----
Balance as at
30 June 2015
(unaudited) 13,749,721 124,591,071 3,652,155 657,257 (3,785,077) (35,855,947) 103,009,180
---- ---- ---- ---- ---- ---- ----
Equity is the aggregate of the following:
-- Share capital; being the nominal value of shares issued.
-- Share premium account; being the excess received over the
nominal value of shares issued less direct issue costs.
-- Shares to be issued reserve; being the credit side of the
entry relating to the expense recognised in the income statement
for share based remuneration.
-- Translation reserve; being the foreign exchange differences
on the translation of foreign subsidiaries.
-- Acquisition of non-controlling interests reserve; being an
acquisition of 15% of FCF Minerals Corporation's shares after
previous acquisitions which had provided the Group with control of
the board of the subsidiary company.
-- Profit and loss account; being the cumulative loss attributable to equity shareholders.
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY
for the year ended 31 DECEMBER 2015
Share capital Share premium account Shares to be issued reserve Translation reserve Acquisition of Profit and loss account Total equity
non-controlling interest
reserve
GBP GBP GBP GBP GBP GBP GBP
Balance at 1
January 2015 13,749,721 124,591,071 3,652,155 3,352,574 (3,785,077) (33,910,469) 107,649,975
----------------------- ----------------------------- ----------------------------- ----------------------------- ----------------------------- ----------------------------- --------------
Exchange
differences
on
translating
foreign
operations - - - 182,115 - - 182,115
Loss for the
year - - - - - (2,149,167) (2,149,167)
----------------------- ----------------------------- ----------------------------- ----------------------------- ----------------------------- ----------------------------- --------------
Total
comprehensive
income for
the year - - - 182,115 - (2,149,167) (1,967,052)
Issue of
equity share
capital 2,080,333 4,160,667 - - - - 6,241,000
Balance at 31
December 2015 15,830,054 128,751,738 3,652,155 3,534,689 (3,785,077) (36,059,636) 111,923,923
----------------------- ----------------------------- ----------------------------- ----------------------------- ----------------------------- ----------------------------- --------------
(audited)
Equity is the aggregate of the following:
-- Share capital; being the nominal value of shares issued.
-- Share premium account; being the excess received over the
nominal value of shares issued less direct issue costs.
-- Shares to be issued reserve; being the credit side of the
entry relating to the expense recognised in the income statement
for share based remuneration.
-- Translation reserve; being the foreign exchange differences
on the translation of foreign subsidiaries.
-- Acquisition of non-controlling interest reserve; being an
acquisition of 15% of FCF Minerals Corporation's shares after
previous acquisitions which had provided the Group with control of
the board of the subsidiary company.
-- Profit and loss account; being the cumulative loss attributable to equity shareholders.
CONDENSED CONSOLIDATED INTERIM CASH FLOW STATEMENT for the
period ended 30 June 2016
6 month period 6 month period Year
ended ended ended
30 June 2016 30 June 2015 31 December 2015
Unaudited Unaudited Audited
GBP GBP GBP
(Loss)/gain before
taxation (16,268,408) (1,279,152) 235,643
Fair value loss/ (gain)
on forward sales
contracts 11,438,864 (1,769,956) (8,511,399)
Fair value loss/ (gain)
on interest rate swaps 114,937 23,778 146,101
Impairment - 293,705 -
Depreciation 1,057,981 1,091,621 1,726,688
Amortisation 74,405 37,579 70,834
Share of losses of
associates 12,440 15,252 26,325
Net finance costs 920,809 7,206 2,897,043
(Increase)/decrease in
receivables (48,415) 55,979 (40,572)
Increase/(decrease) in
payables (1,278,105) (262,422) (294,824)
---------------------------- -------------------------- --------------------------
Cash used in operating
activities (3,975,492) (1,786,410) (3,744,161)
Interest received 207 281 1,028
Interest paid (444,663) (7,487) (274,977)
---------------------------- -------------------------- --------------------------
Net cash used in
operating activities (4,419,948) (1,793,616) (4,018,110)
Investing activities
Purchase of property,
plant and equipment (7,973,242) (19,974,764) (34,090,272)
Purchase of intangible
assets (145,278) (20,092) (51,040)
---------------------------- -------------------------- --------------------------
Net cash used in
investing activities (8,118,520) (19,994,856) (34,141,312)
Financing activities
Repayment of borrowings (1,488,521) - -
Proceeds from borrowings - 20,012,502 29,084,416
Net proceeds from issue
of share capital 4,297,518 - 6,241,000
Proceeds from settlement
of gold forward
contracts 1,041,465 - 1,277,813
---------------------------- -------------------------- --------------------------
Net cash arising from
financing activities 3,850,462 20,012,502 36,603,229
Net increase/(decrease)
in cash and cash
equivalents (8,688,006) (1,775,970) (1,556,193)
---------------------------- -------------------------- --------------------------
Cash and cash equivalents
at beginning of year 10,969,449 12,251,994 12,251,994
Foreign exchange
difference (696,194) (123,738) 273,648
Cash and cash equivalents
at end of year 1,585,249 10,352,286 10,969,449
============================ ========================== ==========================
Notes to the condensed consolidated interim financial
statements
1. General information
Metals Exploration plc is the parent company of the Group. Its
shares are listed on the AIM market of the London Stock Exchange.
The registered address of Metals Exploration plc is 200 Strand,
London, WC2R 1DJ.
These condensed consolidated interim financial statements were
approved by the Board of Directors on 30 September, 2016.
The results for the year ended 31 December 2015 have been
audited whilst the results for the six months ended 30 June 2015
and 30 June 2016 are unaudited.
The financial information set out in this interim report does
not constitute statutory accounts as defined in Section 434 of the
Companies Act 2006. The Group's statutory accounts for the year
ended 31 December 2015 which were prepared under International
Financial Reporting Standards ("IFRS") as adopted for use in the
European Union, were filed with the Registrar of Companies. The
auditors reported on these accounts, their report was unqualified
and did not contain a statement under either Section 498 (2) or
Section 498 (3) of the Companies Act 2006. The auditors drew
attention to the Going Concern principle by way of emphasis.
2. Basis of preparation
These condensed consolidated interim financial statements are
for the six month period ended 30 June 2016. They have been
prepared in accordance with IFRS as adopted for use in the European
Union with the exception of IAS 34: Interim Financial Reporting.
IFRS is subject to amendment and interpretation by the
International Accounting Standards Board ("IASB") and the IFRS
Interpretations Committee and there is an ongoing process of review
and endorsement by the European Commission. The financial
information has been prepared on the basis of IFRS that the Board
of Directors expect to be applicable as at 31 December 2016.
These condensed consolidated interim financial statements have
been prepared under the historical cost convention, except for the
revaluation of certain financial instruments.
3. Hedging
Under the terms of the debt financing facility FCF Minerals
Corporation, a wholly owned subsidiary of the Company, entered into
two hedging arrangements with each of the facility banks: an
interest rate hedge for approximately 40% of the interest exposure;
and a gold forward sales programme representing a total of 90,000
ounces of gold. 45,000 ounces of forward sales contracts remain
open. The movement in fair value of these derivative financial
instruments is charged to the condensed consolidated statement of
total comprehensive income and derivative financial assets and
liabilities recognised on the condensed consolidated balance sheet.
The Group has elected not to apply hedge accounting.
Notes to the condensed consolidated interim financial statements
(continued)
4. Loss per share
The loss per share was calculated on the basis of net loss
attributable to equity shareholders divided by the weighted average
number of ordinary shares.
6 month period ended 30 6 month period ended 30 Year ended 31 December 2015
June 2016 June 2015
(unaudited) (unaudited) (audited)
GBP GBP GBP
Loss
Net loss attributable to
equity shareholders for
the purpose of basic and
diluted loss per
share (12,451,474) (1,945,478) (2,149,167)
----- ----- -----
Number of shares
Weighted average number of
ordinary shares for the
purpose of basic and
diluted loss per share 1,657,155,614 1,374,972,025 1,420,447,578
----- ----- -----
Basic and diluted loss per
share (0.751)p (0.141)p (0.151)p
----- ----- -----
The basic and diluted loss per share is the same, as the
exercise of staff share options and warrants would reduce the loss
per share and therefore, are anti-dilutive.
5. Capital Commitments
As at 30 June 2016 the Group had GBP156,868 of outstanding
capital commitments (30 June 2015: GBP3,463,304).
6. Subsequent Events
In the period following 30 June 2016 to the current date, the
Company announced that is has successfully raised a total of
GBP8,656,530 by way of two private share placements to its major
shareholders. A private share placement in July 2016 raised
GBP3,806,421 from a share placing of 76,128,414 new ordinary shares
of 1 pence each at a placing price of 5.0 pence per share. During
September 2016 a private share placement raised GBP4,850,109 from a
share placing of 97,002,174 new ordinary shares of 1 pence each at
a placing price of 5.0 pence per share.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SDFSASFMSESU
(END) Dow Jones Newswires
September 30, 2016 04:03 ET (08:03 GMT)
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