TIDMPRS
RNS Number : 9910P
Paternoster Resources PLC
24 November 2016
24 November 2016
PATERNOSTER RESOURCES PLC
"Paternoster" or the "Company"
Quarterly Update to 30 September 2016
Paternoster Resources plc, the AIM quoted investing company
focused on the natural resources sector, is pleased to provide a
quarterly update for the three months to 30 September 2016.
Key points
-- Net asset value per share at 30 September 2016 was 2.2 times the period end share price
-- Total cash held was equivalent to 48% of market capitalization at the period end
-- Listed investments and cash represented 184% of market capitalization at the period end
-- Net asset value increased by 6% during Q3 2016
-- 21% increase in net asset value year to 30 September 2016
-- Improvement in underlying portfolio liquidity
Given the strong growth of the Company's underlying portfolio
and good levels of liquidity which is continuing into Q4 of 2016,
the Company is currently considering implementing a capital
reduction in order to create distributable reserves. This would
give the Company both the option to provide a distribution to
shareholders and also to acquire its own shares, both of which
should provide an increased real return to shareholders and allow
flexibility with regard to capital structure going forward. A
capital reduction would require shareholder approval and the
Company will provide a further update on this in due course.
Nicholas Lee, Chairman of Paternoster, commented:
"The value of Paternoster's portfolio has continued to increase
during the third quarter of 2016. Almost 90% of its investment
portfolio, which is currently worth around GBP3.6 million, now
comprises principally cash and listed investments."
The key unaudited performance indicators are set out below.
COMPANY STATISTICS 30 September 30 June 2016 Change
2016
------------------------------- ----------------- ------------ --------
Net asset value GBP3,581,184 GBP3,393,584 5.5%
Net asset value - fully
diluted per share 0.353p 0.368p (4.0)%
Closing share price 0.163p 0.160p 1.9%
Share price premium/(discount)
to net asset value (54%) (57%) -
Market capitalisation GBP1,661,137 GBP1,477,000 12.5%
-------------------------------- ---------------- ------------ --------
Category Principal investments Cost or valuation
(GBP)
at 30 September
2016
---------------- ---------------------------- ------------------
Bison Energy Services
Limited, Elephant Oil
Unlisted/pre Limited and MX Oil
IPO plc 417,178
---------------- ---------------------------- ------------------
Metal Tiger plc, MX
Oil plc, Plutus PowerGen
plc, Shumba Coal Limited,
New World Oil and Gas
plc, Ortac Resources
Limited, Polemos plc
and Alecto Minerals
Listed plc 2,261,023
---------------- ---------------------------- ------------------
Investment
portfolio 2,678,201
---------------------------------------------- ------------------
Cash resources 794,180
---------------------------------------------- ------------------
Total 3,472,381
---------------------------------------------- ------------------
Since the Company's interim results statement to 30 June 2016,
the Company's net assets have increased by a further 6% or 21%
during the first nine months of the year. During Q3, the Company
has made new investments in Polemos plc and Ortac Resources Limited
("Ortac"), both of which are performing well. Also, as part of its
investment in Ortac, the Company was able to effectively exchange
its unlisted investment in Andiamo Exploration Limited for listed
shares in Ortac thereby improving the underlying liquidity of its
investment portfolio.
The majority of the developments within the Company's portfolio
in Q3 have been covered in the commentary included in the Company's
interim results statement to 30 June 2016. However, certain
additional developments are covered below.
MX Oil plc
MX Oil decided to exercise its right to take full control of its
investment in OML 113 through the acquisition of Jacka Resources
Nigeria, an intermediate holding company, for a nominal sum, from
Jacka Resources Limited. MX Oil has also now received its first
return from its investment in OML 113 by way of revenue received
from the first lifting of oil from the Aje Field amounting to
US$1.2 million. This is clearly a major milestone for the
company.
Plutus PowerGen plc
During the period, the company has managed to secure planning
consents for two new 20MW sites in Ipswich. However, more
importantly after the period end, the company announced both the
commissioning of its first site and revenue from its first sales of
power which are significant developments for the company. As a
result, the company's share price has more than doubled since the
period end but this increase is not included in the Company's net
asset value as at 30 September 2016. The Company currently holds
around 49 million shares or around 7.1% of the company.
Alecto Minerals plc
The company signed a non-binding letter of intent with Ashanti
Gold Corp ("Ashanti"), a Toronto Venture Exchange listed public
company, under which Ashanti would earn an interest in the
Company's Kossanto East Gold Project in western Mali, which has a
JORC-Code compliant mineral resource estimate of 247,000 oz Au and
significant further upside potential. It also carried out a placing
to raise GBP600,000 before expenses to provide the company with
additional working capital to fund its pre-development activities
on the ground in Zambia. The company continues to make progress
towards its goal of bringing the 400,000 tonnes per annum open-pit
Matala Gold Project in south-central Zambia into low-cost
production in the near to mid-term.
New World Oil and Gas plc
The company had been making good progress with regard to a
possible reverse takeover of Big Sofa Limited. However, after the
end of the period under review, due to a possible issue regarding a
legacy transaction, this takeover was no longer able to progress
and the trading in the company's shares has since been cancelled.
The company still holds significant assets in the form of cash and
a loan to Big Sofa Limited and the company is currently working on
a revised strategy in order to deliver a return to
shareholders.
Ortac Resources Limited
Since the Company's investment, Ortac has increased its
investment in Casa Mining Limited ("CASA") to around 20% of CASA's
equity share capital. CASA is a private company that holds
prospective gold mining and exploration licences in the Democratic
Republic of Congo. CASA holds three contiguous mining licenses
(covering a total 133km(2) ), issued in March 2015 and valid for 30
years. These licence`es, which encompass a 60km strike length of
the Tanganyika graben within the Rusizian belt or Misisi Corridor,
include the Akyanga deposit along with the Lubitchako, Tulongwe,
Kilombwe and Mutshobwe prospects. It is believed that the Misisi
Gold Project, with over 1 million ounces of gold discovered so far,
has the scope to become a low cost, open pit operation that can be
brought into production quickly.
For more information please contact:
Paternoster Resources plc:
Nicholas Lee, Chairman +44 (0) 20 7580 7576
Nominated Adviser and Joint Broker: +44 (0) 20 7601 6100
Stockdale Securities
Antonio Bossi/David Coaten
Joint Broker: +44 (0) 20 7562 3351
Peterhouse Capital Limited
Lucy Williams
PR:
Cassiopeia Services +44 (0) 7949 690338
Stefania Barbaglio
This information is provided by RNS
The company news service from the London Stock Exchange
END
UPDFEEFWDFMSESF
(END) Dow Jones Newswires
November 24, 2016 02:00 ET (07:00 GMT)
Riverfort Global Opportu... (LSE:RGO)
Historical Stock Chart
From Apr 2024 to May 2024
Riverfort Global Opportu... (LSE:RGO)
Historical Stock Chart
From May 2023 to May 2024