TIDMPGL

RNS Number : 0250Q

Peninsular Gold Limited

12 June 2015

12 June 2015

Peninsular Gold Limited

('Peninsular Gold' or the 'Company' or the 'Group')

(AIM: PGL)

Interim Results (Unaudited) For The Six Month Period To 31(st) December 2014

Peninsular Gold Limited, the gold production and exploration group focused on Malaysia, today releases its Interim Results for the six months ended 31(st) December 2014.

Financial and Operations

   --    Loss after tax for the Group of GBP4,278,067 (2013: Loss GBP2,837,459) 
   --    Loss per share 4.97p (2013: Loss 3.30p) 

-- Proposed change in conditions to environmental requirements in relation to tailings dams location caused operations at Raub to be suspended, as was announced 2 December 2014

-- Peninsular Gold Limited requested suspension from AIM on 2 December 2014 pending clarification of its financial position following the halting of operations at Raub

   --    Alkhair Bank agrees to deferment of principal payments until March 2015 
   --    Convertible loan note holders agree to 6 month extension of maturity to June 2015 

Post Period

   --    GBP1.8m raised for working capital via convertible loan notes in January 2015 

-- Bank Rakyat agrees to payments deferral until June 2015 and a further partial deferral until November 2015

   --    Company seeking a further deferral from convertible loan note holders to December 2015 
   --    Tailings dam location issue resolved, with no new requirements, as announced 1 June 2015 
   --    Intention to secure additional funds during June 2015 
   --    Alkhair agrees to principal payment deferral until June 2015 
   --    Company seeking further deferral from Alkhair Bank 

-- Gold production at Raub intended to resume during July 2015, subject to securing additional funds

Condensed Consolidated Statement of Financial Position (Unaudited)

At 31(st) December 2014

(Expressed in United Kingdom Sterling)

 
                                              31(st) December      31(st) December      30(th) 
                                                    2014                 2013            June 
                                                                                         2014 
                                    Notes       (Unaudited)          (Unaudited)      (Audited) 
                                                    GBP                  GBP             GBP 
 
 Non-Current Assets 
 Property, plant and equipment        2               42,916,654        44,373,674     43,540,775 
 Other intangible assets              3               13,576,695        13,983,544     13,652,948 
 Mining development expenditure       4                7,288,654         7,160,159      7,262,637 
                                           ---------------------  ----------------  ------------- 
 
 Total Non-current Assets                             63,782,003        65,517,377     64,456,360 
 
 Current Assets 
 Inventories                           5               4,301,645         3,494,886      3,728,210 
 Other receivables                    6                  610,197         1,052,949        948,904 
 Short-term investments                                        -           133,381        159,855 
 Cash and cash equivalents            7                  118,609           203,849        247,038 
 
                                                       5,030,451         4,885,065      5,084,007 
 
 Current Liabilities 
 Trade and other payables             8             (16,174,212)      (11,660,860)   (12,968,340) 
 Borrowings                           9             (19,671,500)       (3,773,251)   (19,684,733) 
 Current tax liability                                 (129,656)         (204,158)      (128,997) 
                                           ---------------------  ----------------  ------------- 
 
 Total Current Liabilities                          (35,975,368)      (15,638,269)   (32,782,070) 
 
 Net Current Liabilities                            (30,944,917)      (10,753,204)   (27,698,063) 
                                           ---------------------  ----------------  ------------- 
 
 Total Assets Less Current 
  Liabilities                                         32,837,086        54,764,173     36,758,297 
 
 Non-Current Liabilities 
 Trade and other payables           8,13               (570,000)         (510,000)      (540,000) 
 Borrowings                           9              (1,000,513)      (17,223,036)      (815,216) 
 Provision for mine restoration      10                (769,629)         (750,396)      (753,769) 
 
   Total Non-Current Liabilities                     (2,340,142)      (18,483,432)    (2,108,985) 
                                           ---------------------  ----------------  ------------- 
 Net Assets                                           30,496,944        36,280,741     34,649,312 
                                           =====================  ================  ============= 
 
 Shareholders' Equity 
 Share capital                       11                        -                 -              - 
 Stated capital account              11               40,897,957        40,897,957     40,897,957 
 Reserves                                           (10,401,013)       (4,617,216)    (6,248,645) 
                                                                                    ------------- 
 
 Total Equity                                         30,496,944        36,280,741     34,649,312 
                                           =====================  ================  ============= 
 

Condensed Consolidated Statement of Comprehensive Income (Unaudited)

For the Period From 1(st) July 2014 to 31(st) December 2014

(Expressed in United Kingdom Sterling)

 
                                                   Six months      Six months         Year 
                                                   ended 31(st)    ended 31(st)    ended 30(th) 
                                                     December        December          June 
                                                       2014            2013            2014 
                                          Notes    (Unaudited)     (Unaudited)      (Audited) 
                                                       GBP             GBP             GBP 
 
 Revenue                                                204,573       8,671,910      16,450,074 
 
 Less: Cost of sales                                (1,738,809)     (6,704,849)    (12,760,462) 
                                                 --------------  --------------  -------------- 
 
 Gross (Loss)/ Profit                               (1,534,236)       1,967,061       3,689,612 
 
 Administrative expenses                            (1,014,838)     (1,462,825)     (2,715,947) 
 Other operating expenses                             (515,081)       (636,883)     (1,239,810) 
 Financial income                                         3,663             331           3,528 
 Finance costs                            13,14     (1,031,316)     (1,226,468)     (2,328,685) 
 Loss on extinguishment 
  of convertible loan notes                   9       (155,861)               -               - 
 Foreign exchange loss                                 (59,094)     (1,462,032)     (1,702,239) 
 Other income                                            28,696           2,937           3,897 
 
 Loss before taxation                       14      (4,278,067)     (2,817,879)     (4,289,644) 
 
 Income tax expense                        15                 -        (19,580)        (16,699) 
 
 Loss for the Period                                (4,278,067)     (2,837,459)     (4,306,343) 
 
 Other Comprehensive Income/(Expense): 
   Exchange difference arising 
    on translation of foreign 
    operations                                          125,699     (1,377,786)     (1,540,331) 
 
 Other Comprehensive Income/(Expense) 
  for the Period, net of 
  tax                                                   125,699     (1,377,786)     (1,540,331) 
                                                 --------------  --------------  -------------- 
 
 Total Comprehensive Expense 
  for the Period                                    (4,152,368)     (4,215,245)     (5,846,674) 
 
 Loss attributable to 
  : 
 Equity shareholders of 
  the parent                                        (4,278,067)     (2,837,459)     (4,306,343) 
 
 Basic and diluted loss 
  per share                                16           (4.97p)         (3.30p)         (5.01p) 
                                                 ==============  ==============  ============== 
 
 

Condensed Consolidated Statement of Changes in Equity (Unaudited)

For the Period From 1(st) July 2014to 31(st) December 2014

(Expressed in United Kingdom Sterling)

 
                   Share        Stated       Accumulated      Capital     Other       Translation                 Total 
                   capital     capital          losses        reserve     Reserve       reserve 
                               account 
                    GBP          GBP             GBP            GBP        GBP            GBP                GBP 
 
 
 At 1(st) July 
  2013                   -     40,897,957      (3,646,515)     456,303          -         2,734,187           40,441,932 
 Loss for the 
  period                 -              -      (2,837,459)           -          -                 -        (2,837,459) 
 Other 
  Comprehensive 
  Expense: 
  Exchange 
  difference 
  arising on 
  translation 
  of foreign 
  operations             -              -                -           -          -       (1,377,786)          (1,377,786) 
                 ---------  -------------  ---------------  ----------  ---------  ----------------  ------------------- 
 Equity element 
  of 
  Convertible 
  loan 
  notes                  -              -                -           -     54,054                 -               54,054 
 
 At 31(st) 
  December 
  2013                   -     40,897,957      (6,483,974)     456,303     54,054         1,356,401        36,280,741 
 Loss for the 
  period                 -              -      (1,468,884)           -          -                 -         (1,468,884) 
 Other 
 Comprehensive 
 Expense: 
 Exchange 
  difference 
  arising on 
  translation 
  of foreign 
  operations             -              -                -           -          -         (162,545)        (162,545) 
 
 At 1(st) July 
  2014                   -     40,897,957      (7,952,858)     456,303     54,054         1,193,856           34,649,312 
 Loss for the 
  period                 -              -      (4,278,067)           -          -                 -          (4,278,067) 
 Other 
  Comprehensive 
  Expense: 
  Exchange 
  difference 
  arising on 
  translation 
  of foreign 
  operations             -              -                -           -          -           125,699              125,699 
 
   At 31(st) 
   December 
   2014                  -     40,897,957     (12,230,925)     456,303     54,054         1,319,555           30,496,944 
                 =========  =============  ===============  ==========  =========  ================  =================== 
 
 

*Other reserve relates to the equity element of convertible loan notes issued by the Company (note 9).

Condensed Consolidated Statement of Cash Flows (Unaudited)

For the Period From 1(st) July 2014 to 31(st) December 2014

(Expressed in United Kingdom Sterling)

 
                                              Six months      Six months         Year 
                                              ended 31(st)    ended 31(st)    ended 30(th) 
                                                December        December          June 
                                                  2014            2013            2014 
                                              (Unaudited)     (Unaudited)      (Audited) 
                                                  GBP             GBP             GBP 
 Operating Activities 
 Loss before tax                               (4,278,067)     (2,817,879)     (4,289,644) 
 Depreciation of property, plant 
  and equipment                                    724,593         978,906       1,720,822 
 Finance costs                                     968,704       1,157,325       2,217,646 
 Loss on extinguishment of convertible 
  loan notes                                       155,861               -               - 
 Interest income                                   (3,663)           (331)         (3,528) 
 (Profit)/loss on disposal of fixed 
  assets                                          (21,172)               -           8,053 
 Loss on foreign exchange                           59,093       1,462,032       1,665,524 
 Amortisation of mining development 
  expenditure                                       31,754         182,981         340,882 
 Unwinding of discount on restoration 
  provision                                         12,252          12,396          23,160 
 Amortisation of other intangible 
  assets                                            76,253         427,726         758,322 
 Amortisation of issue costs of 
  convertible loan notes                             7,353             378           7,353 
 Amortisation of transaction costs 
  for bank loan                                     25,259          26,369          51,039 
 Preference dividend                                30,000          30,000          60,000 
 
 Cash inflow before working capital 
  changes                                      (2,211,780)       1,459,903       2,559,629 
 Taxation paid                                   (122,906)        (19,580)       (185,036) 
 
 Changes in working capital: 
 
 (Increase)/decrease in inventories              (573,436)         840,266         606,942 
 Decrease in trade and other receivables           338,707         117,033         221,078 
 Increase/(decrease) in trade and 
  other payables                                 3,220,558     (1,461,326)       2,205,243 
                                            --------------  --------------  -------------- 
 
 Cash inflow from operating activities             651,143         936,296       5,407,856 
 
 Investing Activities 
 Interest received                                   3,663             331           3,528 
 Purchase of property, plant and 
  equipment                                      (457,033)     (1,586,614)     (1,976,103) 
 Proceeds from disposal of fixed 
  assets                                           662,090               -               - 
 Mining development expenditure                   (20,022)       (200,536)       (537,159) 
 Placement of fixed deposit                              -               -         (1,981) 
 Withdrawal of fixed deposit                       159,855          24,493               - 
 
 Cash inflow/(outflow) from investing 
  activities                                       348,553     (1,762,326)     (2,511,715) 
 
 
 
                                                 Six months         Six months            Year 
                                                 ended 31(st)       ended 31(st)          ended 
                                                   December           December         30(th) June 
                                                     2014               2013              2014 
                                                 (Unaudited)        (Unaudited)        (Audited) 
                                                     GBP                GBP               GBP 
 
 Financing Activities 
 Repayment of bank loans                                    -          (1,323,448)     (2,313,675) 
 Repayment of hire purchase obligations              (79,947)             (33,040)        (55,631) 
 Proceeds from issue of convertible 
  loan notes, 
  net of transaction costs (Note 
  9)                                                        -            1,185,294       1,185,294 
 Finance costs paid                                 (937,087)          (1,193,848)     (1,689,181) 
                                               --------------   ------------------   ------------- 
 
 Cash outflow from financing activities           (1,017,034)          (1,365,042)     (2,873,193) 
 
 Net (decrease) /increase in Cash 
  and Cash Equivalents                             (17,338)            (2,191,072)          22,948 
 
 Cash and Cash Equivalents at beginning 
  of Period                                         247,038                264,659         264,659 
 
 
 
 Impact of cash held in foreign 
  currencies                          (111,091)      2,130,262   (40,569) 
                                     ----------  -------------  --------- 
 
 Cash and Cash Equivalents at end 
  of Period (Note 7)                    118,609        203,849    247,038 
                                     ==========  =============  ========= 
 
 

Notes to the Financial Statements (Unaudited)

For the Period From 1(st) July 2014 to 31(st) December 2014

1. Accounting Policies

These financial statements for the period from 1(st) July 2014 to 31(st) December 2014 have been prepared in accordance with International Accounting Standard 34 which applies to interim financial statements.

The same accounting policies and methods of computation are followed in these interim financial statements as were used in the preparation of the financial statements for the year ended 30th June 2014. A copy of those accounts is available on www.peninsulargold.com. The information provided as comparatives herein for the year ended 30th June 2014 does not constitute the full statutory accounts as per Jersey law by itself. This information was derived from the statutory accounts for the year ended 30th June 2014, a copy of which has been delivered to the Registrar of Companies. The auditors' report on the said accounts was not qualified although it contains an emphasis of matter with regard to going concern.

Basis of preparation

Going concern

The financial statements have been prepared on the going concern basis. At 31(st) December 2014 the

Group had net current liabilities of GBP 30.9 million (2013: GBP 10.8 million). Of this total, GBP 18.2 million

(2013: GBP2.6 million) represents the current portion of bank loans repayable within one year.

The bank loans are presented as current liabilities, as at 31(st) December 2014 the Group was still awaiting the written confirmation from its principal lender, Bank Rakyat Kerjasama Malaysia Bhd ("Bank Rakyat"), of its verbally given agreement to defer the commencement of scheduled payments due to the Bank until June 2015. Confirmation of the agreement to defer the commencement of payments was given after the period end. Also at 31(st) December 2014, The Group did not meet the required Finance Service Cover Ratio on the Alkhair bank loan, although Alkhair bank had agreed, before 31 December 2014, to the deferral of repayments until March 2015 and subsequently until June 2015. The presentation of the bank obligations in these interim results as current liabilities represents the accounting treatment necessary to comply with IAS 1"Presentation of Financial Statements".

On 2nd December 2014, the Group issued an announcement to AIM that the production facility at

Raub was being placed into a temporary care and maintenance period, and the shares of the

Company were requested to be suspended from trading on the AIM market, while the Group

reviewed its financing and working capital requirements.

The decision to suspend operations at the Raub facility came following discussions with the Malaysian environmental authorities regarding additional operational requirements which the authorities had sought to attach to the environmental consent which governs operations at the Raub project. In particular the authorities had requested changes relating to the location of RAGM's tailings storage facilities which would require significant changes to its tailings management plan. Given the onset of the monsoon season at the time, when tailings management is particularly important, RAGM took the prudent decision to halt gold production at Raub pending resolution of this matter which has recently been resolved, as announced to the market on 1 June 2015.

On 12 December 2014 the Group announced that it has arranged an extension of its convertible loan

notes of GBP1.2 million, which were due to mature on 22nd December 2014. The loan notes were

extended until 23rd June 2015 and management expect a further deferral to be agreed shortly.

The Group also negotiated an extension of capital repayments on its borrowing facilities with Bank

Rakyat and with Alkhair International Islamic Bank Bhd ("Alkhair"), which were due to commence in December 2014. An initial extension on both facilities was made to March 2015, with Alkhair agreeing prior to 31st December 2014 and Bank Rakyat agreeing after 31st December 2014, with a further extension since agreed to June 2015. Bank Rakyat has now agreed an additional, partial deferral to November 2015. Management expect a similar extension to be granted by Alkhair.

As announced to AIM on 23rd January 2015, the Group raised GBP1.8 million through the issue of convertible loan notes, to meet the Group's immediate working capital requirements and to assist with work to re-start the production facility at Raub.

In June 2015, the Group is seeking additional funding of up to GBP4 million and is currently in

discussions with several potential investors.

Management consider that the cost of re-starting production at Raub will be approximately

GBP520,000. Works to restart the plant at Raub will take place in late June and early July 2015.

Following the re-commencement of production, operations at Raub are expected to be cash

positive. The funding to be raised in June 2015 is expected to be sufficient to meet the restart costs

at Raub, and the working capital requirements of the company, including commencement of capital

repayments on the bank finance facilities with Bank Rakyat and with Alkhair.

The directors consider that the above matters, and primarily the requirement to raise additional

funding, represent a material uncertainty regarding the going concern position of the group. The

interim report does not contain any adjustments to the value of assets and liabilities that would arise

if the group is not able to raise the necessary funding.

   2.   Property, Plant and Equipment 
 
                                                         Furniture,                     Mining       Leasehold       Assets         Total 
                   Plant &                     Motor      Fittings                      Assets          Land         Under 
                                                              & 
                  Equipment     Buildings    Vehicles     Equipment    Renovation                                 Construction 
                     GBP           GBP          GBP          GBP           GBP            GBP           GBP           GBP            GBP 
 Cost             2,910,104      415,361      504,930      325,287       198,180      48,702,307       91,451          -         53,147,620 
 At 1(st) July 
  2014 
 Additions               267             -    340,099          809               -       115,858              -        -             457,033 
 Disposal         (450,876)              -   (207,093)             -             -      (571,642)             -        -         (1,229,611) 
 Currency 
  translation 
  difference         14,873      (5,337)        2,580        1,661         1,013         256,362          467          -             271,619 
 
 At 31(st) 
  December 
  2014            2,474,368      410,024      640,516      327,757       199,193      48,502,885       91,918          -         52,646,661 
                ============  ============  ==========  ============  ============  ==============  ===========  =============  ============ 
 
 Accumulated 
  depreciation 
 At 1(st) July 
  2014            2,344,605      392,268      345,498      153,010       101,686      6,205,762        64,016          -          9,606,845 
 Charge for 
  the period           9,285       3,421       61,972       16,199        10,162         618,865        4,689          -            724,593 
 Disposal         (450,844)              -   (185,287)            -              -               -            -        -          (636,131) 
 Currency 
  translation 
  difference         11,798        1,937           534           462          318         19,417           234         -             34,700 
 
 At 31(st) 
  December 
  2014            1,914,844      397,626      222,717      169,671       112,166       6,844,044        68,939         -           9,730,007 
 
 
 
     Net Book 
     Value 
     At 31(st) 
      December 
      2014       559,524   12,398   417,799   158,086    87,027   41,658,841   22,979                    -    42,916,654 
                ========  =======  ========  ========  ========  ===========  =======  ====================  =========== 
 
   At 30(th) 
    June 
    2014         565,500   23,093   159,432   172,149    96,494   42,496,672   27,435                     -   43,540,775 
                ========  =======  ========  ========  ========  ===========  =======  ====================  =========== 
 
    At 31(st) 
     December 
     2013        559,028   32,008   205,763   197,901   103,912   12,245,381   32,362            30,997,319   44,373,674 
                ========  =======  ========  ========  ========  ===========  =======  ====================  =========== 
 

Assets under construction refer to the construction works for the upgrade to the Carbon-In-Leach Plant, which was brought into operation in June 2014 and reclassified into Mining Assets.

Leasehold land refers to a piece of land, owned by S.E.R.E.M. Malaysia Sdn Bhd, to which mining certificate MC511 relates.

3. Other Intangible Assets - Mining Reserves and Resources

 
                            31(st)        31(st)        30(th) 
                            December      December       June 
                              2014          2013         2014 
                          (Unaudited)   (Unaudited)   (Audited) 
                              GBP           GBP          GBP 
 Cost 
 
 Opening balance           17,378,478    17,378,478   17,378,478 
 
 
 Amortisation 
 
 Opening balance            3,725,530     2,967,208    2,967,208 
 Charge for the period         76,253       427,726      758,322 
 
 Closing balance            3,801,783     3,394,934    3,725,530 
                         ============  ============  =========== 
 
 
 Net book value            13,576,695    13,983,544   13,652,948 
                         ============  ============  =========== 
 
 

Other intangible assets comprise mineral properties including mining licences and rights.

The Group's mining assets were valued by independent experts prior to the acquisition of the subsidiaries on 17th June 2005 and these valuations were considered to be relevant and unimpaired at the financial reporting date. The valuation was based upon the defined reserves, resources and the Group's prospecting interests. Valuation techniques most relevant to the asset type, as considered by the independent valuer, were applied and included discounted cash flows for the defined reserves, comparable transaction method for the inferred resources and the Geoscience Factor method for mineral titles.

No revenue has been generated from SEREM in the financial period ended 31st December 2014 from its mineral reserves. Hence, there is no amortisation of mining reserves and resources for SEREM.

   4.   Mining Development Expenditure 
 
                                       31(st)        31(st)        30(th) 
                                       December      December        June 
                                         2014          2013          2014 
                                     (Unaudited)   (Unaudited)    (Audited) 
                                         GBP           GBP           GBP 
 Cost 
 Opening balance                       9,288,764     9,858,079     9,858,079 
 Currency translation difference          47,473   (1,009,762)   (1,106,474) 
 Additions                                20,022       200,536       537,159 
 
 Closing balance                       9,356,259     9,048,853     9,288,764 
                                    ============  ============  ============ 
 
 
 Amortisation 
 Opening balance                     2,026,127   1,911,692   1,911,692 
 Currency translation difference         9,724   (205,979)   (226,447) 
 Amortisation for the period            31,754     182,981     340,882 
 
 Closing balance                     2,067,605   1,888,694   2,026,127 
                                    ==========  ==========  ========== 
 
 
 Net Book Value     7,288,654   7,160,159   7,262,637 
                   ==========  ==========  ========== 
 

The directors are of the view that there will be sufficient future revenues from the extraction of gold to offset the mining development expenditure capitalised in the financial statements.

   5.    Inventories 
 
                                       31(st)            31(st)           30(th) 
                                       December          December           June 
                                         2014              2013             2014 
                                     (Unaudited)       (Unaudited)       (Audited) 
                                         GBP               GBP              GBP 
 Spare parts and consumables             454,730           657,637         553,383 
 Ore stockpiles                        2,727,168         2,349,479       2,713,302 
  Work- in- progress                   1,087,063           463,118         429,007 
  Finished goods                          32,684            24,652          32,518 
 
                                       4,301,645         3,494,886       3,728,210 
                                    ============      ============      ========== 
 

6. Other Receivables

 
                                   31(st)        31(st)       30(th) 
                                   December      December       June 
                                     2014          2013         2014 
                                 (Unaudited)   (Unaudited)   (Audited) 
                                     GBP           GBP          GBP 
 Other receivables, deposits 
  and prepayments                  610,197       1,052,949     948,904 
                                ============  ============  ========== 
 

7. Cash and Cash Equivalents

 
                                31(st)        31(st)       30(th) 
                                December      December       June 
                                  2014          2013         2014 
                              (Unaudited)   (Unaudited)   (Audited) 
                                  GBP           GBP          GBP 
 Cash at bank and in hand       118,609         203,849     247,038 
                             ============  ============  ========== 
 
 

8. Trade and Other Payables

 
                                   31(st)        31(st)        30(th) 
                                   December      December       June 
                                     2014          2013         2014 
                                 (Unaudited)   (Unaudited)   (Audited) 
                                     GBP           GBP          GBP 
 Trade payables                    9,963,057     8,495,139   10,788,886 
 Other payables and accruals       6,781,155     3,675,721    2,719,454 
 
                                  16,744,212    12,170,860   13,508,340 
 Less: non-current portion 
  (Note 13)                        (570,000)     (510,000)    (540,000) 
                                ------------  ------------  ----------- 
                                  16,174,212    11,660,860   12,968,340 
                                ============  ============  =========== 
 

9. Borrowings

 
                                        31(st)             31(st)               30(th) 
                                        December          December               June 
                                          2014              2013                 2014 
                                      (Unaudited)       (Unaudited)           (Audited) 
                                          GBP               GBP                  GBP 
 Current Portion 
   Bank loans                          18,190,534         2,584,756               18,451,783 
   Convertible loans                    1,375,587         1,130,988                1,176,072 
    Hire purchase obligations             105,379            57,507                   56,878 
                                     ------------      ------------      ------------------- 
                                       19,671,500         3,773,251               19,684,733 
                                     ------------      ------------      ------------------- 
 
 Non-current Portion 
   Bank loans                                   -        16,377,394                        - 
   Preference shares - debt 
    portion                               664,000           664,000                  664,000 
   Hire purchase obligations              336,513           181,642                  151,216 
                                     ------------      ------------      ------------------- 
 
                                        1,000,513        17,223,036                  815,216 
                                     ============      ============      =================== 
 

Classification of Borrowings

The bank loans are presented as current liabilities, as at 31st December 2014 the Group was still awaiting the written confirmation from its principal lender, Bank Rakyat Kerjasama Malaysia Bhd ("Bank Rakyat"), of its verbally given agreement to defer the commencement of scheduled payments due to the Bank until June 2015. Confirmation of the agreement to defer commencement of payments was given after the period end. Also at 31st December 2014, The Group did not meet the required Finance Service Cover Ratio on the Alkhair bank loan, although Alkhair bank had agreed, before 31 December 2014, to the deferral of repayments until March 2015 and subsequently until June 2015. The presentation of the bank obligations in these interim results as current liabilities represents the accounting treatment necessary to comply with IAS 1"Presentation of Financial Statements".

The Group also negotiated an extension of capital repayments on its borrowing facilities with Bank Rakyat and with Alkhair International Islamic Bank Bhd ("Alkhair"), which were due to commence in December 2014. An initial extension on both facilities was made to March 2015, with a further extension since agreed to June 2015. Bank Rakyat has now agreed an additional, partial deferral to November 2015. Management expect a similar extension to be granted by Alkhair.

Bank Loans

All bank loans are secured by way of a debenture over all the assets and undertakings of RAGM, a third party charge over a property owned by a company under common control and corporate guarantees provided by the Parent Company.

Convertible Loan Notes

Upon redemption of the loan notes by the Company, either at maturity or earlier, a noteholder is entitled to receive from the Company an additional payment equal to the number of convertible loan notes to be redeemed by the relevant noteholder divided by 0.12 and multiplied by 3 pence. If all convertible loan notes are redeemed and not converted this would result in an additional payment of GBP300,000.

The convertible loan notes were extended in December 2014 for six months until 23rd June 2015. This resulted in a loss of GBP155,861 on extinguishment of the liability on the previous agreement.

Convertible Loan Notes (Continued)

The net proceeds received from the issue of convertible loan notes were split between the liability and the equity portions as follows:-

 
                                  31(st)        31(st)       30(th) 
                                  December      December       June 
                                    2014          2013         2014 
                                (Unaudited)   (Unaudited)   (Audited) 
                                    GBP           GBP          GBP 
 
 
 1,200,000 convertible loan 
  notes                           1,200,000     1,200,000   1,200,000 
 Less: transaction cost            (14,706)      (14,706)    (14,706) 
 Transaction costs amortised         14,706             -       7,353 
                               ------------  ------------  ---------- 
 
                                  1,200,000     1,185,294   1,192,647 
 Amount classified as equity       (54,054)      (54,054)    (54,054) 
 Loss on extinguishment of 
  convertible loan notes            155,861             -           - 
                               ------------  ------------  ---------- 
 Accrued interest                    73,780             -      37,479 
                               ------------  ------------  ---------- 
 Carrying amount                  1,375,587     1,130,988   1,176,072 
                               ============  ============  ========== 
 
 

Hire Purchase Obligations

Hire purchase agreements are subject to fixed interest rates ranging from 2.29% to 3.65%.

 
 10. Provision for mine restoration                                      31(st)        31(st)       30(th) 
                                        December      December       June 
                                          2014          2013         2014 
                                      (Unaudited)   (Unaudited)   (Audited) 
                                          GBP           GBP          GBP 
 
 
   Opening balance                        753,769       822,986     822,986 
   Unwinding of discount                   12,252        12,396      23,160 
   Currency translation difference          3,608      (84,986)    (92,377) 
 
   Closing balance                        769,629       750,396     753,769 
                                     ============  ============  ========== 
 

Provision for restoration of the mine site at Raub is based on management's best estimate of the present value of future costs required. The estimates are based on assumptions such as the extent and cost of required rehabilitation activities. These uncertainties may result in the actual future expenses being different from the amounts currently provided.

11. Share Capital and Stated Capital Account

   (a)        Share Capital 
 
                                            31(st)          31(st)          30(th) 
                                            December        December       June 2014 
                                              2014            2013 
                                          (Unaudited)     (Unaudited)     (Audited) 
                                              GBP             GBP            GBP 
 Company 
 Authorised 
   Unlimited ordinary shares of GBPNil              -               -              - 
    par value each 
                                         ============    ============    =========== 
 
 Allotted, called up and fully paid 
   85,986,550 ordinary shares of GBPNil             -               -              - 
    par value each 
   2,000,000 preference shares of                   -               -              - 
    GBPNil par value each 
                                         ------------    ------------    ----------- 
                                                    -               -              - 
                                         ============    ============    =========== 
 
   (b)        Stated Capital Account 
 
                              2014 GBP 
 At 1(st) July 2014 
  and at 31(st) December 
  2014                       40,897,957 
 
 

12. Translation reserve

Assets and liabilities of foreign consolidated subsidiaries are translated into United Kingdom Sterling at the rate of exchange ruling at the balance sheet date.

Revenue and expenses are translated at the average exchange rates for the period. All resulting translation differences are included in a translation reserve in equity.

The closing rates used in the translation of foreign currency monetary assets and liabilities are as follows:

 
 United Kingdom Sterling    1.00   Malaysian Ringgit       5.4396 
 United Kingdom Sterling    1.00   United States Dollars   1.5564 
 United States Dollars      1.00   Malaysian Ringgit       3.4950 
 

13. Dividends

Included in the Financing Costs is an amount of GBP30,000 in respect of 2,000,000 redeemable, convertible 6% preference shares' dividends. In accordance with the share subscription agreement, preference dividends should be accrued from the date of issuance to the conversion date or the redemption date. The accumulated amount of preference dividends has now amounted to GBP570,000 since the issue of the said shares at GBP0.50 per share on 27th May 2005, as indicated in trade and other payables.

14. Loss Before Tax

Loss before tax for the period are arrived at after charging the following:

 
                                                  31(st)            31(st)            30(th) 
                                                  December          December            June 
                                                    2014              2013              2014 
                                                (Unaudited)       (Unaudited)        (Audited) 
                                                    GBP               GBP               GBP 
   Cost of sales 
 Cost of production                               1,110,902         5,840,145       11,238,171 
  Depreciation of property, plant and 
   equipment                                        627,905           864,704         1,522,291 
 
  Operating & administrative expenses 
 Audit fees - current                                     -                 -          84,687 
  - underprovision in prior year                          -             1,000             - 
 Depreciation of property, plant and 
  equipment                                          96,688           114,202           198,531 
  Amortisation of mining development 
   expenditure                                       31,754           182,981           340,882 
 (Profit)/loss on disposal of fixed 
  assets                                           (21,172)                 -             8,053 
 Amortisation of other intangible 
  assets                                             76,253           427,726           758,322 
 Amortisation of issue costs for convertible 
  loan notes                                          7,353               378             7,353 
 Amortisation of transaction costs 
  for bank loan                                      25,259            26,369                 - 
  Rental of premises                                 64,654            67,493           126,094 
 

15. Income Tax Expense

The Parent Company is subject to Jersey income tax at a rate of 0%.

Malaysian Corporation Tax is provided on taxable profits at the appropriate rate for subsidiary companies located in Malaysia. Income tax for the financial period is derived by using the Malaysian tax rate of 25% (2013: 25%).

Tax reconciliation:

 
 Group                                          31(st) 
                                                December 
                                                  2014 
                                              (Unaudited) 
                                                  GBP 
 
 Loss before taxation                            (4,278,067) 
                                          ================== 
 
 Income tax using Malaysian tax rate             (1,069,517) 
 Disallowed expenses                               1,431,059 
 Effect of timing difference on mining 
  allowance and capital allowance                  (361,542) 
 
                                                           - 
 
 
   16.   Loss per share 

The calculation of loss per share is based on the loss for the period after taxation and on the weighted average number of shares in issue during the period as below:-

 
 Basic and diluted loss per    31(st) December     31(st)           30(th) 
  share                              201           December          June 
                                                     2013            2014 
                                 (Unaudited)     (Unaudited)       (Audited) 
                                     GBP             GBP            GBP 
 Loss used in calculation          (4,278,067)   (2,837,459)     (4,306,343) 
 
 Weighted average number of 
  ordinary shares                   85,986,550    85,986,550      85,986,550 
 Basic and diluted loss per 
  share                                (4.97p)       (3.30p)         (5.01p) 
                              ================  ============  ============== 
 

The redeemable preference shares and convertible loan notes are non-dilutive.

17. Segmental information

Currently all revenues, profits and losses before tax and the carrying value of assets and liabilities arise from the production and sale of gold doré bars and activities related to the upgrade of the carbon-in-leach plant and gold mining and exploration activity within Malaysia.

18. Capital Commitments

 
                                31(st)        31(st)       30(th) 
                                December      December       June 
                                  2014          2013         2014 
                              (Unaudited)   (Unaudited)   (Audited) 
                                  GBP           GBP          GBP 
 
 Authorised and contracted 
  for                           4,094,930     4,059,617   4,074,109 
                             ============  ============  ========== 
 

The above amount relates to the expansion of the carbon-in-leach plant (CIL).

-Ends-

For further information:

 
  Dato' Sri Andrew TY Kam         Patrick Watson 
    Chairman and Chief Executive    Finance Director 
    Peninsular Gold Limited         Peninsular Gold Ltd. 
    Tel: +60 (0)3 2698 8381         Tel: +44 (0)7799 885653 
  ------------------------------  --------------------------- 
   Samantha Harrison / Stephen     Martin Lampshire 
    Francavilla/Steve Allen         Broker 
    Nominated Advisor               Daniel Stewart & Co. Ltd. 
    Ambrian Partners Limited        Tel: +44 (0)20 7776 6550 
    Tel: +44 (0)20 3440 6800 
  ------------------------------  --------------------------- 
 
 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

IR ZMGMVLZFGKZG

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