TIDMTSTR
RNS Number : 1447L
Tri-Star Resources PLC
29 September 2016
TRI-STAR RESOURCES PLC
("Tri-Star" or the "Company")
Interim Results for the six month period ended 30 June 2016
Tri-Star (AIM: TSTR), the integrated antimony development
company, is pleased to announce results for the six months ended 30
June 2016.
Results for the Interim Period
Following the successful implementation of restructuring
initiatives undertaken in the latter part of 2015 and the first
half of 2016, Tri-Star is pleased to report a significantly reduced
operating loss for the six months to 30 June 2016 of GBP485,000
(2015: GBP1,083,000). Total comprehensive loss amounts to
GBP931,000 (2015: GBP1,924,000).
Administration and exploration expenses have been cut by 55% in
the first half to GBP478,000 (2015: GBP1,072,000).
Business Review
Activity during the first half has focussed on the continued
development of the Oman Antimony Roaster Project ("OAR"). The OAR
is being developed by Strategic & Precious Metals Processing
LLC ("SPMP"), an Omani company. The OAR is being built by SPMP in
Sohar, Oman. Tri-Star has a 40% interest in SPMP.
The OAR has continued to show good progress in 2016. SPMP's most
notable developments announced to date include: the strengthening
of its management team, confirmation that the project is now
entering the procurement and implementation phase, and the
strategically important and exciting inclusion of a
revenue-enhancing gold plant within the overall specification for
the facility.
Tri-Star will continue to keep the market updated with
developments in relation to this crucial project.
Market Abuse Regulations
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
Enquiries:
Tri-Star Resources plc Tel: +44 (0) 20 3470 0470
Guy Eastaugh, Chief Executive Officer
SP Angel Corporate Finance (Nomad and Broker) Tel: +44 (0) 20 3470 0470
Robert Wooldridge / Jeff Keating
Yellow Jersey PR Limited (Media Relations) Tel: +44 (0) 7825 916
715
Dominic Barretto / Alistair de Kare-Silver
TRI-STAR RESOURCES PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 30 JUNE 2016
Notes Unaudited Unaudited
Period ended Period ended
30 June 30 June
2016 2015
GBP'000 GBP'000
Share based payment charge (5) (11)
Exploration expenditure
and other administrative
expenses (478) (1,072)
Amortisation of intangibles (2) -
Total administrative expenses
and loss from operations (485) (1,083)
Share of loss in associated
companies (305) (93)
Finance income 848 180
Finance cost (990) (638)
-------------- --------------
Loss before taxation (932) (1,634)
Taxation 4 - -
Loss after taxation, and
loss attributable to the
equity holders of the
Company (932) (1,634)
Loss before and after
taxation attributable
to
Non-controlling interest - (3)
Equity holders of the
parent (932) (1,631)
Other comprehensive (expenditure)/income
Items that will be reclassified
subsequently to profit
and loss
Exchange differences on
translating foreign operations 1 (290)
Other comprehensive (expenditure)/income
for the period, net of
tax 1 (290)
-------------- --------------
Total comprehensive loss
for the year, attributable
to owners of the Company (931) (1,924)
============== ==============
Total comprehensive loss
attributable to
Non-controlling interest - (3)
Equity holders of the
parent (931) (1,921)
Loss per share
Basic and diluted loss
per share (pence) 5 (0.01) (0.02)
============== ==============
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AT 30 JUNE 2016
30 June 31 December
2016 2015
(Unaudited) (Audited)
Assets Notes GBP'000 GBP'000
Non-current
Intangible assets 20 -
Investment in associates 1,947 2,252
Property, plant and equipment 57 62
-------------- ------------
2,024 2,314
Current
Cash and cash equivalents 580 1,308
Trade and other receivables 59 148
Total current assets 639 1,456
Total assets 2,663 3,770
============== ============
Liabilities
Current
Trade and other payables 49 373
Derivative financial liability 6 253 1,100
Total current liabilities 302 1,473
Liabilities due after
one year
Loans 6 9,309 8,318
Deferred tax liability 176 176
Total liabilities 9,787 9,967
Equity
Issued share capital 2,601 2,601
Share premium 14,519 14,515
Share based payment reserve 1,074 1,074
Other reserves (6,156) (6,156)
Translation reserve (757) (758)
Retained earnings (18,402) (17,470)
-------------- ------------
(7,121) (6,194)
-------------- ------------
Non-controlling interest (3) (3)
Total equity (7,124) (6,197)
Total equity and liabilities 2,663 3,770
============== ============
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHSED 30 JUNE 2016
Unaudited Unaudited
Period ended Period ended
30 June 30 June
2016 2015
GBP'000 GBP'000
Cash flows from operating
activities
Loss after tax (932) (1,634)
Amortisation of intangibles 2 -
Depreciation 10 10
Finance income (1) (1)
Finance cost 991 638
Loss from associates 305 93
Fees paid by shares 5 11
Equity settled share-based
payments - 11
Movement on fair value
of derivatives (847) (178)
Decrease/(increase) in
trade and other receivables 97 (3)
(Decrease) in trade and
other payables (368) (68)
Net cash outflow from
operating activities (738) (1,121)
-------------- --------------
Cash flows from investing
activities
Purchase of property,
plant and equipment (2) (15)
Purchase of intangible
assets (22) -
Cash invested in associates - (27)
Finance income 1 1
Net cash outflow from
investing activities (23) (41)
-------------- --------------
Net (decrease) in cash
and cash equivalents (761) (1,162)
Cash and cash equivalents
at beginning of period 1,308 1,496
Exchange differences on
cash and cash equivalents 33 (7)
Cash and cash equivalents
at end of period 580 327
-------------- --------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 30 JUNE 2016
Share Share Other Share-based Translation Retained Total Non-controlling Total
capital premium reserves payment reserve earnings attributable interest equity
account reserve to
owners
of
parent
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at
1 January
2015
(audited) 2,525 13,179 (6,156) 767 (256) (10,140) (81) (235) (316)
Issue of
share capital - 11 - - - - 11 - 11
Share based
payments - - - 11 - - 11 - 11
Transactions
with owners - 11 - 11 - - 22 - 22
------------- ------------------- ----------------- ---------------- ----------------------- ----------------- ------------------------- ---------------- -------------------------
Loss for
the period - - - - - (1,631) (1,631) (3) (1,634)
Exchange
difference
on
translation
of foreign
operations - - - - (290) - (290) - (290)
Total
comprehensive
loss for
the period - - - - (290) (1,631) (1,921) (3) (1,924)
------------- ------------------- ----------------- ---------------- ----------------------- ----------------- ------------------------- ---------------- -------------------------
Balance at
30 June 2015
(unaudited) 2,525 13,190 (6,156) 778 (546) (11,771) (1,980) (238) (2,218)
------------- ------------------- ----------------- ---------------- ----------------------- ----------------- ------------------------- ---------------- -------------------------
Issue of
share capital 76 1,438 - - - - 1,514 - 1,514
Share issue
costs - (113) - - - - (113) - (113)
Share based
payments - - - 326 - - 326 - 326
Transfer
on lapse
of warrants - - - (30) - 30 - - -
----------------
Transactions
with owners 76 1,325 - 296 - 30 1,727 - 1,727
------------- ------------------- ----------------- ---------------- ----------------------- ----------------- ------------------------- ---------------- -------------------------
Loss for
the period - - - - - (5,729) (5,729) 235 (5,494)
Exchange
difference
on
translation
of foreign
operations - - - - (212) - (212) - (212)
Total
comprehensive
loss for
the period - - - - (212) (5,729) (5,941) 235 (5,706)
------------- ------------------- ----------------- ---------------- ----------------------- ----------------- ------------------------- ---------------- -------------------------
Balance at
31 December
2015
(audited) 2,601 14,515 (6,156) 1,074 (758) (17,470) (6,194) (3) (6,197)
------------- ------------------- ----------------- ---------------- ----------------------- ----------------- ------------------------- ---------------- -------------------------
Issue of
share capital - 4 - - - - 4 - 4
Share based
payments - - - - - - - - -
----------------
Transactions
with owners - 4 - - - - 4 - 4
------------- ------------------- ----------------- ---------------- ----------------------- ----------------- ------------------------- ---------------- -------------------------
Loss for
the period - - - - - (932) (932) - (932)
Exchange
difference
on
translation
of foreign
operations - - - - 1 - 1 - 1
Total
comprehensive
loss for
the period - - - - 1 (932) (931) - (931)
------------- ------------------- ----------------- ---------------- ----------------------- ----------------- ------------------------- ---------------- -------------------------
Balance at
30 June 2016
(unaudited) 2,601 14,519 (6,156) 1,074 (757) (18,402) (7,121) (3) (7,124)
------------- ------------------- ----------------- ---------------- ----------------------- ----------------- ------------------------- ---------------- -------------------------
NOTES TO THE INTERIM REPORT
FOR THE SIX MONTHSED 30 JUNE 2016
1. GENERAL INFORMATION
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 statutory financial statements of the
Company and its subsidiaries (the "Group") for the year ended 31
December 2015 have been completed and filed at Companies House. The
auditor's report on the annual financial statements was unqualified
and did not contain statements under section 498(2) or section
498(3) of the Companies Act 2006.
2. ACCOUNTING POLICIES
BASIS OF PREPARATION
The Company's ordinary shares are quoted on the AIM market of
the London Stock Exchange and the Company applies the Companies Act
2006 when preparing its annual financial statements.
The annual financial statements for the year ended 31 December
2016 will be prepared under International Financial Reporting
Standards as adopted by the European Union (IFRS) and the principal
accounting policies adopted remain unchanged from those adopted in
preparing its financial statements for the year ended 31 December
2015.
The accounting policies have been applied consistently
throughout the Group for the purposes of preparation of these
condensed consolidated interim financial statements.
GOING CONCERN
The Directors have prepared cash flow forecasts for the period
ending 30 September 2017. The forecasts identify unavoidable third
party running costs of the Group and demonstrate that the Group
will have sufficient cash resources available to allow it to
continue in business for a period of at least twelve months from
the date of approval of these interim financial statements.
Accordingly, the accounts have been prepared on a going concern
basis. The forecasts assume receipt of the US$ 2million contingent
asset referred to in Note 7 of these interim financial
statements.
3. SEGMENTAL REPORTING
An operating segment is a distinguishable component of the Group
that engages in business activities from which it may earn revenues
and incur expenses, whose operating results are regularly reviewed
by the Group's chief operating decision maker to make decisions
about the allocation of resources and assessment of performance and
about which discrete financial information is available. The chief
operating decision maker has defined that the Group's only
reportable operating segment during the period is mining.
The Group has not generated any revenues from external customers
during the period.
In respect of the non-current assets as at 30 June 2016 of
GBP2,024,000, GBP35,000 arise in the UK (30 June 2015: GBP48,000,
31 December 2015: GBP41,000), and GBP1,989,000 arise in the rest of
the world (30 June 2015: GBP4,467,000, 31 December 2015:
GBP2,273,000).
4. TAXATION
Unrelieved tax losses of approximately GBP15.30 million as at 30
June 2016 (30 June 2015: GBP9.61 million, 31 December 2015:
GBP14.92) remain available to offset against future taxable trading
profits. The unprovided deferred tax asset at 30 June 2016 is
GBP3,447,000 (30 June 2015: GBP2,197,000, 31 December 2015:
GBP3,269,000) which has not been provided on the grounds that it is
uncertain when taxable profits will be generated by the Group to
utilise those losses.
5. LOSS PER SHARE
The calculation of the basic loss per share is based on the loss
attributable to ordinary shareholders divided by the weighted
average number of shares in issue during the period.
Unaudited Unaudited
six months six months
ended ended
30 June 2016 30 June 2015
GBP'000 GBP'000
Loss on ordinary activities
after tax (GBP'000) (932) (1,634)
--------------------- ---------------------
Weighted average number
of shares for calculating
basic loss per share 8,461,899,843 6,944,959,686
--------------------- ---------------------
Basic and diluted loss
per share (pence) (0.01) (0.02)
--------------------- ---------------------
Diluted earnings per share is the same as basic loss per share
in each year because the potential shares arising under the share
option scheme, share warrants and convertible bonds are
anti-dilutive.
The weighted average number of ordinary shares excludes deferred
shares which have no voting rights and no entitlement to a
dividend.
6. CONVERTIBLE SECURED LOAN NOTES
The Company has issued three tranches of convertible secured
loan notes ("Notes") to Odey European Inc. ("OEI"). The Notes carry
a non-cash coupon of 15% per annum which compounds half yearly and
are secured by way of a guarantee and debenture granted by Tri-Star
Antimony Canada Inc. The Notes are redeemable at 100% of their
principal amount plus accrued interest by way of the issue of new
Tri-Star Resources plc ordinary shares on 19 June 2018 (unless
otherwise previously so converted).
On 19 June 2013, Tri-Star made the initial issuance of GBP4.0
million of Notes to OEI (the "2013 Notes"). These Notes were drawn
down in two tranches of GBP1.33 million on 20 June 2013 and of
GBP2.67 million on 27 September 2013.
On 27 August 2014, Tri-Star issued additional GBP2.0 million of
Notes to OEI under the same terms as in 2013 (the "2014 Notes"). On
11 August 2015, Tri-Star issued a further GBP2.0 million of Notes,
again, under the same terms (the "2015 Notes").
The conversion price is fixed at GBP0.0020. On maturity in June
2018, if a conversion notice has not been served previously, the
Notes will convert into new Tri-Star ordinary shares at the
conversion price of GBP0.0020. Up to maturity, OEI has the option
to serve a conversion notice (at the conversion price) at any time.
If the conversion of Notes in the period to maturity results in OEI
holding more than 29.9% of the Company's enlarged voting share
capital, OEI has the option of either continuing to hold those
notes the conversion of which would increase its holding of shares
above 29.9% or otherwise to have those notes redeemed in cash.
The Directors consider that the use of the Black-Scholes model
is the most appropriate method of valuing the derivative component
of the Notes. The following assumptions were used in calculating
the fair value:
- the option to convert the Notes into equity will be exercised on 31 December 2016
- share price volatility for a Tri-Star Resources plc share of
117%, which is based on historic volatility
- conversion price of GBP0.0020
- Tri-Star Resources plc share price of GBP0.0009
- the effects of potential dilution have been ignored
The carrying value of the host debt component of the Notes at 30
June 2016 amounted to GBP9,309,000 (31 December 2015: GBP8,318,000;
30 June 2015: GBP5,711,000). The increase in fair value in the six
month period, amounting to GBP991,000, has been recorded in finance
cost in the Consolidated Statement of Comprehensive Income for the
period ended 30 June 2016 (30 June 2015: GBP638,000).
The conversion option is an embedded derivative treated as a
liability at fair value through profit and loss. At 30 June 2016
the fair value of the embedded derivative, calculated using the
Black-Scholes option valuation model, was GBP253,000 (31 December
2015: GBP1,100,000; 30 June 2015: GBP448,000). The decrease in fair
value in the six month period, amounting to GBP847,000, has been
recorded in finance income in the Consolidated Statement of
Comprehensive Income for the period ended 30 June 2016 (30 June
2015: GBP178,000).
The Notes are recorded in the Consolidated Statement of
Financial Position as follows:
Carrying
value of At 30 Profit At 31 At 30 Profit At 31
host debt June and loss December June and loss December
instrument 2016 movement 2015 2015 movement 2014
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
2013 Notes (4,862) (582) (4,280) (3,748) (459) (3,289)
2014 Notes (2,380) (218) (2,162) (1,963) (179) (1,784)
2015 Notes (2,067) (191) (1,876) - - -
TOTAL (9,309) (991) (8,318) (5,711) (638) (5,073)
------- --------- --------- ------- --------- ---------
Fair value At 30 Profit At 31 At 30 Profit At 31
of derivative June and loss December June and loss December
2016 movement 2015 2015 movement 2014
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
2013 Notes (140) 468 (608) (313) 124 (437)
2014 Notes (60) 203 (263) (135) 54 (189)
2015 Notes (53) 176 (229) - - -
TOTAL (253) 847 (1,100) (448) 178 (626)
------- --------- --------- ------- --------- ---------
7. CONTINGENT ASSET
Under the agreement to sell the Roaster intellectual property to
SPMP, there remains a balance of US$ 2million to be paid to
Tri-Star by SPMP. This payment is contingent upon the successful
completion of a pilot plant and has not been recognised as an asset
in the financial statements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SEAEFAFMSESU
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