Anglesey Mining plc
Annual report 2015
Strategic report – chairman’s
statement
The expected resurgence in the resources sector that we
discussed this time last year has generally not yet materialised
and indeed there have been some areas in which confidence has been
badly eroded. These matters have made it very difficult for all
junior companies operating in the sector, including our own. The
general economic malaise in Europe
has now spread somewhat to the US and importantly to China. Whilst there are some areas in which
blue sky is appearing the lack of confidence of the investment
sector in resources has made raising funding quite difficult.
In order to reduce corporate costs all the directors have
demonstrated their commitment to the group by waiving salaries and
fees since 1st July 2014 which saved
more than £80,000 in the financial year. This waiver is expected to
continue until the financial position of the group improves.
Grangesberg Iron
Our major effort during the year has been with the Grangesberg
project where we began managing operations in May 2014. A successful geotechnical investigation
programme followed the production of a compliant ore resource
estimate. However the ever more depressed iron ore market forced us
to the conclusion that we should not exercise the option over a 51%
interest which has now been replaced with a right of first refusal
over that interest.
As part of the ongoing arrangements we continue to manage the
project albeit subject to certain restrictions. The Grangesberg
board will need to keep the future prospects for the iron ore
market firmly in view as it looks to future project funding and
possible alternative investment strategies.
Labrador Iron
In Canada the operations of
Labrador Iron Mines, in which the company continues to hold a 15%
interest, remained suspended during 2014 as iron ore prices
declined below a level at which an operating surplus could be made.
LIM spent the majority of the year seeking new financing
particularly for the development of its flagship Houston deposit.
However with iron ore prices continuing to fall these financing
efforts proved to be impossible and after the end of the financial
year LIM initiated proceedings for a financial restructuring under
the Canadian Companies Creditors Arrangement Act (“CCAA”). LIM has
raised some funds through asset sales and has sufficient cash
available to continue to operate a limited function until at least
the end of the current financial year whilst it seeks new funding
and reviews its ongoing business strategy.
LIM owns extensive iron ore resources, processing plants and
equipment and rail infrastructure and facilities in its
Schefferville Projects but is currently in a challenging financial
position. LIM believes that an orderly CCAA process that enables
the restructuring of the company’s debts, the restructuring of
certain of its operating contracts and securing additional
development financing to proceed with the development of the
Houston Project is in the best interest of all of stakeholders.
Parys Mountain
Operations at Parys Mountain were maintained at a low level as a
consequence of limited available funding and no additional drilling
took place while management focused on studying the optimisation of
mine development. We are fortunate to hold freehold title to the
majority of the known resource and thus are not subject to onerous
annual exploration costs as would be common in many other
jurisdictions. Site maintenance costs are also kept to a
minimum.
The increase in the zinc price that was forecast this time last
year and which will be a key driver in the immediate future
economics of Parys Mountain has not yet materialised. However the
fundamentals for zinc remain strong with major mines such as
Lisheen and Century planned to close during 2015. With little new
production coming on stream stocks of zinc metal have continued to
fall and it now seems only a matter of time before prices do
eventually start to move upwards. We will need to raise funds to
update studies on Parys Mountain particularly with regard to what
may well now be lower than previous capital costs, so that we will
be properly placed when the zinc market begins its long delayed
move forward.
Outlook
The future for commodity prices continues at best to be
uncertain. The group has exposure to iron ore both at LIM and at
Grangesberg and whilst neither makes a cash draw on Anglesey any
upward movement in the iron ore price would significantly benefit
both projects and hence the general tenor of the group.
Robust steel production and iron ore demand from China have underpinned the iron ore price over
the past ten years. Despite an economic slowdown, it would seem
that Chinese steel production continues to increase and
China will need to import more
iron ore to replace the shutdown of domestic production, which
should help iron ore price stability.
The iron ore industry is re-consolidating as small, high cost
miners are closing. The larger lower cost miners such as Rio Tinto,
BHP Billiton and Vale should continue to take market share as a
result. The top four producers are re-asserting their status
as an oligopoly in the market and currently control 54% of the
supply. This dominant position is forecast to increase to 75%
within the next two years and will likely result in more
disciplined supply growth and less volatility in iron ore
prices.
The group’s Parys Mountain property will benefit from any
improvement in the price of zinc. Zinc will form a major part of
the projected revenue stream from Parys Mountain, especially in the
early years of production, and would be followed by increasing
proportions of lead and copper as mine development advances.
Over the past few years there has been a strong argument
supporting higher prices for zinc and lead over the long term, as a
forecast imbalance between demand and supply is widely expected to
have a significant impact. Wood Mackenzie, a global leader in
commercial intelligence for the metals and mining industries, has
stated that as a result of the industrialisation and urbanisation
of China, they expect growth in
demand for zinc to average 6% per year until 2020. For the rest of
the world, they forecast demand to rise at a rate of 2.2% annually
so that on a global basis, zinc demand is expected to increase 4%
annually until 2020. This view is also held by most market
commentators including CRU which in its 2014 Zinc Market Outlook
was forecasting that “enormous deficits are likely in 2017 and
2018” and that “some very high prices are in prospect”.
The demand for zinc and lead is expected to remain robust
because of wide spread industrial usage. On the supply side, there
has been a lack of investment in recent years in the exploration
for, and development of, new zinc and lead projects, which has led
to limited new sources of supply. In addition, a number of larger
producers, notably the Brunswick mine in Canada, the Lisheen mine in Ireland and the Century mine in Australia, either have closed or are expected
to shut down by the end of 2015, all of which should lead to
reduced current mine supply of zinc and lead concentrates.
While the US economy continues to show signs of improvement, the
global economic outlook remains weak and uncertain. China’s growth
continues to decelerate and Europe
risks slipping into recession. Near-term growth prospects in both
China and Europe now look dependent on further
government intervention. There is also concern that as prices rise,
some Chinese zinc production will come back on line. While it is
possible that Chinese production could increase to fill the gap,
much higher prices are needed to sustain these operations. However,
on the supply side, the pipeline of large-scale, development-ready,
zinc-lead projects remains very thin and the long term outlook for
the prices of both zinc and lead remains very favourable.
John F.
Kearney
Chairman
31 July 2015
Strategic report – operations
Principal activities and business
review
The group is engaged in the business of exploring and evaluating
the wholly-owned Parys Mountain project in North Wales, although activities there have
been very limited during the year.
Under various agreements the group participates in the
management of the Grangesberg iron ore property in Sweden in which it has a 6% holding and a
right of first refusal to acquire a further 51% ownership
interest.
Operations at the Labrador iron project in eastern Canada in which group has a 15% holding
(2014 – 15%) are currently suspended. LIM is now operating
under the Canadian Companies’ Creditors Arrangement Act to
facilitate a restructuring and refinancing of its business
operations.
The group continues its search for other mineral exploration and
development opportunities.
The aim of the group is to create value in the Parys Mountain
and Grangesberg properties, including by co-operative arrangements
where appropriate, and to actively engage in other mineral ventures
using the group’s own resources together with such external
investment and finance as may be required.
Parys Mountain
The Parys Mountain property has a significant UK zinc, copper
and lead deposit with small amounts of silver and gold. A
feasibility study in 1991 demonstrated the technical and economic
viability of bringing the property into production at a rate of
350,000 tonnes per annum, producing zinc, copper and lead
concentrates. In 2012 the first JORC Code compliant resource
estimate of the property was published. It showed 2.1 million
tonnes at 6.9% combined base metals in the indicated category and
4.1 million tonnes at 5.0% combined in the inferred category.
The site has a head frame, a 300m deep production shaft and
planning permission for operations; consequently the lead time to
production is expected to be relatively short. The group has
freehold ownership of the minerals and surface land and there is
substantial exploration potential. Infrastructure is good,
political risk is low and the project has the support of local
people and government.
During the financial year activities have been limited to a
minor amount of follow-up geological work.
There are technical and other matters to be addressed to ensure
that the project moves towards production, however the directors
are of the opinion that this project is at an advanced state and
the existence of the original feasibility study, together with the
valid planning permissions, will do much to reduce both the volume
of work required to move the project into production and the risks
associated with this work. After due consideration the directors
decided to undertake an impairment review this year, however this
review did not indicate any requirement for impairment against the
value of the Parys Mountain mineral asset on the balance sheet.
Operation of the mine and the receipt of cashflows from it are
dependent on finance being available to fund the development of the
property.
Grangesberg Iron AB
In late May 2014 the group entered
into agreements giving it the right to acquire a majority interest
in the Grangesberg iron ore mine situated in the mineral-rich
Bergslagen district of central Sweden about 200 kilometres north-west of
Stockholm. Until its closure in
1989 due to prevailing market conditions Grangesberg had mined in
excess of 150 million tonnes of iron ore. GIAB holds a 25 year
exploitation permit covering the previously mined Grangesberg
underground mining operations granted by the Swedish Mining
Inspectorate in May 2013.
In a series of agreements the group purchased for US$145,000 a direct 6% interest in GIAB, a
private Swedish company founded in 2007 which had recently
completed a financial and capital restructuring with assistance
from the group. At the same time the group obtained an option to
acquire 51% of the enlarged share capital of GIAB for the issue of
new ordinary shares of Anglesey to the value of US$1.75 million priced at a minimum of
3.375 pence per share. The group also
entered into shareholder and cooperation agreements such that
during the term of the option Anglesey holds operatorship of GIAB
subject to certain conditions and appointed three out of five
directors to the board of GIAB. Given the continuing difficulties
with the iron ore price this option was not exercised however a
right of first refusal in the case of another offer has been
secured, until June 2018. This right
has been granted in exchange for the group continuing to co-manage
GIAB on a cost recovery basis.
In September 2014 an NI
43-101Technical Report was prepared by Roscoe Postle Associates Inc
(“RPA”) showing a compliant resource estimate for the Grangesberg
Mine of 115.2 million tonnes at 40.2% Fe in the indicated category
and 33.1 million tonnes at 45.2% Fe in the inferred category. RPA
concluded that the Grängesberg iron ore deposit hosts a significant
iron resource that has excellent potential for expansion at
depth.
A programme to look closely at geo-mechanical and
hydro-geological aspects of the site which will be critical
components of the permitting regime required for the dewatering and
reopening of the mine has been completed and a final report is in
the course of preparation.
During the coming year, under Anglesey’s direction, and subject
to suitable economic conditions prevailing, GIAB will review and
update its previous pre-feasibility study on the project
incorporating inputs from the compliant resource estimate and from
the geo-technical investigations.
Labrador Iron
Labrador Iron Mines Holdings Limited (LIM) was formerly an
associate company in the group however following a dilution of the
group’s holding in November 2012 it
became an investment in which Anglesey holds a 15%
interest.
Labrador Iron Mines is engaged in the exploration, development
and mining of direct shipping iron ore projects near Schefferville
in the central part of the Labrador Trough region, one of the major
iron ore producing regions in the world. There is a direct railway
to the Port of Sept-Îles on the Atlantic Ocean and established
infrastructure.
LIM did not undertake any mining operations during the 2014
operating season due to a combination of the prevailing low price
of iron ore in 2014, an assessment of the current economics of its
deposits and a strategic shift in corporate focus towards
establishing a lower cost operating framework.
In April 2015 LIM initiated a
court-supervised process under the Canadian Companies' Creditors
Arrangement Act in order to facilitate a restructuring and
refinancing of its business operations. These proceedings should
provide LIM with the time and stability to restructure its
business, negotiate a restructuring plan with stakeholders,
compromise creditor claims, restructure key operating contracts,
secure new financing, and otherwise consider restructuring and
refinancing options. In view of this situation the value of the
group’s investment in LIM has been written down to £1 in the
accounts to 31 March 2015.
Other activities
Management continues to search for new properties suitable for
development within a relatively short time frame and within the
financing capability likely to be available to the group.
Performance
The directors expect to be judged by results of project
development and/or exploration and by their success in creating
long term value for shareholders. The group holds shares in mineral
companies and has interests in exploration and evaluation
properties and, until economically recoverable reserves can be
identified, there are no standardised performance indicators which
can usefully be employed to gauge the performance of the group,
other than the market price of the company’s shares.
The chief external factors affecting the ability of the group to
move forward are primarily the demand for metals and minerals,
levels of metal prices and exchange rates; these and other factors
are dealt with in the risks and uncertainties section below.
Financial results and position
The group has no revenues from the operation of its properties.
The loss for the year after tax was £1,736,610 compared to a loss
of £7,173,703 in 2014. Each of these losses are due chiefly to
falls in the value of the group’s investment in Labrador Iron.
Although there were significant expense reductions during the year
(including the waiver by directors of salaries and fees) the
administrative and other costs excluding investment income and
finance charges were £355,071 compared to £353,455 in the previous
year. Included in this year’s figure was £167,256 in respect of
expenses in connection with the acquisition of the Grangesberg
investment (2014 – nil).
During the year there were no additions to fixed assets (2014
- nil) and £75,145 (2014 - £48,482) was capitalised in
respect of the Parys Mountain property as mineral property
exploration and evaluation.
The group’s cash balance at 31 March
2015 was £96,873 (2014 - £289,097). The foreign
exchange loss of £4,574 (2014 –loss £3,741) shown in the
income statement arises on cash balances held in Canadian dollars
and Swedish Krona.
At 31 March 2015 the company had
160,608,051 ordinary shares in issue, unchanged from last year.
Employment, community, donations and
environment
The group is an equal opportunity employer in all respects and
aims for high standards from and for its employees. It also aims to
be a valued and responsible member of the communities which it
operates in or affects.
The group has no operations; consequently its effect on the
environment is very slight, being limited to the operation of two
small offices, where recycling and energy usage minimisation are
taken seriously and encouraged. It is not practical or useful to
quantify the effects of these measures. There are no social,
community or human rights issues which require the provision of
further information in this report.
Risks and uncertainties
In conducting its business the group faces a number of risks and
uncertainties some of which have been described above in regard to
particular projects. However, there are also risks and
uncertainties of a nature common to all mineral projects and these
are summarised below.
General mining risks
Actual results relating to, amongst other things, mineral
reserves, mineral resources, results of exploration, capital costs,
mining production costs and reclamation and post closure costs,
could differ materially from those currently anticipated by reason
of factors such as changes in general economic conditions and
conditions in the financial markets, changes in demand and prices
for minerals that the group expects to produce, legislative,
environmental and other judicial, regulatory, political and
competitive developments in areas in which the group operates,
technological and operational difficulties encountered in
connection with the group’s activities, labour relations, costs and
changing foreign exchange rates and other matters.
The mining industry is competitive in all of its phases. There
is competition within the mining industry for the discovery and
acquisition of properties considered to have commercial potential.
The group faces competition from other mining companies in
connection with the acquisition and retention of properties,
mineral claims, leases and other mineral interests as well as for
the recruitment and retention of qualified employees and other
personnel.
Development and liquidity risk
On previous occasions and during the year the group has relied
upon its largest shareholder, Juno Limited, for financial support
and may be required to do so in the future to ensure the group will
have adequate funds for its current activities. In the absence of
support from Juno Limited the group would be dependent on the
proceeds of share issues or other sources of funding. Developing
the Parys project will be dependent on raising further funds from
various sources.
Exploration and development
Exploration for minerals and development of mining operations
involve risks, many of which are outside the group’s control. The
group currently operates in politically stable environments and
hence is unlikely to be subject to expropriation of its properties
but exploration by its nature is subject to uncertainties and
unforeseen or unwanted results are always possible.
Metal prices
The prices of metals fluctuate widely and are affected by many
factors outside the group’s control. The relative prices of metals
and future expectations for such prices have a significant impact
on the market sentiment for investment in mining and mineral
exploration companies. Metal price fluctuations may be either
exacerbated or mitigated by currency fluctuations which affect the
amount which might be received by the group in sterling.
Foreign exchange
LIM is a Canadian company; Angmag Limited and GIAB are Swedish
companies. Accordingly the value of the group’s holdings in these
companies is affected by exchange rate risks. Operations at Parys
Mountain are in the UK and exchange rate risks are minor. The
majority of the cash balance at the year-end was held in sterling –
see notes 17 and 24.
Permitting, environment and social
The group holds planning permission for the development of the
Parys Mountain property but further consents will be required to
carry out proposed activities and these may be subject to various
reclamation and operational conditions.
Employees and personnel
The group is dependent on the services of a small number of key
executives including the chairman, chief executive and finance
director. The loss of these persons or the group’s inability to
attract and retain additional highly skilled and experienced
employees for any areas in which the group might engage may
adversely affect its business or future operations. At 31 March 2015 the company had six male directors;
there were no female directors or employees.
Financial instruments
The group’s use of financial instruments is described in note
24.
Approved by the board of directors and
signed on its behalf
Bill
Hooley
Chief executive officer
31 July 2015
Directors’ report
The directors are pleased to submit their report and the audited
accounts for the year ended 31 March
2015.
The corporate governance statement which follows forms part of
this report. In accordance with statutory requirements, the
principal activities of the group and other information is set out
in the strategic report section preceding this report.
Directors
The names of the directors are shown in the directors’
remuneration report and biographical details are shown at the end
of this report. It is the company’s procedure to submit re-election
resolutions for all directors at the annual general meeting. The
company maintains a directors’ and officers’ liability policy on
normal commercial terms which includes third party indemnity
provisions. The powers of the directors are described in the
Corporate Governance Report.
With regard to the appointment and replacement of directors, the
company is governed by its Articles, the Corporate Governance Code,
the Companies Act and related legislation. The Articles themselves
may be amended by special resolution of the shareholders. Under the
Articles, any director appointed by the board during the year must
retire at the AGM following his appointment. In addition, the
Articles require that one-third of the remaining directors retire
by rotation at each general meeting and seek re-appointment.
However it is now the company’s practice to submit re-election
resolutions for all directors at each AGM.
Directors’ interests in material contracts
Juno Limited (Juno), which is registered in Bermuda, holds 36.1% of the company’s ordinary
share capital. The company has a controlling shareholder agreement
and working capital agreement with Juno. Advances made under the
working capital agreement are shown in note 19. Apart from interest
charges there were no transactions between the group and Juno or
its group during the year. An independent committee reviews and
approves any transactions and potential transactions with Juno.
Danesh Varma is a director and,
through his family interests, a significant shareholder of
Juno.
John Kearney is chairman and
chief executive of LIM, Bill Hooley
is a director and vice-chairman of LIM and Danesh Varma is a
director of LIM. All three are shareholders of LIM, are entitled
when applicable to remuneration from LIM. There are no transactions
between LIM, the group and the company which are required to be
disclosed.
In May 2014 Bill Hooley and
Danesh Varma were appointed as
directors of Grangesberg Iron AB and of the special purpose vehicle
Eurmag AB; further information concerning these appointments is
included in the strategic report. Danesh
Varma has been associated with the Grangesberg project since
2007 when he became a director of Mikula Mining Limited, a
company subsequently renamed Eurang Limited, previously
involved in the Grangesberg project. He did not take part in
the decision to enter into the Grangesberg project when this was
approved by the board. The group has a liability to Eurmag AB a
subsidiary of Eurang amounting to £226,857 at the year end
(2014 – nil). See also note 25.
There are no other contracts of significance in which any
director has or had during the year a material interest.
Substantial shareholders
At 16 July 2015 the following
shareholder had advised the company of an interest in the issued
ordinary share
capital: Juno Limited notified an interest in 57,924,248 shares
representing 36.1% of the issued ordinary shares.
Shares
Allotment authorities and disapplication of pre-emption
rights
The directors would usually wish to allot any new share capital
on a pre-emptive basis, however in the light of the group’s
potential requirement to raise further funds for the acquisition of
new mineral ventures, other activities and working capital, they
believe that it is appropriate to have a larger amount available
for issue at their discretion without pre-emption than is normal or
recommended for larger listed companies. At this year's
annual general meeting, the directors will seek a renewal and
replacement of the company's existing share allotment
authorities.
The authority sought in resolution 12 of the notice of the AGM
is to enable the directors to allot new shares and grant rights to
subscribe for, or convert other securities into shares, up to a
nominal value of £540,000 (54,000,000 ordinary shares) which is
approximately one third of the total issued ordinary share capital
of the company as at 16 July 2015.
The directors will consider issuing shares if they believe it would
be appropriate to do so in respect of business opportunities that
arise consistent with the company's strategic objectives. The
directors have no present intention of exercising this general
authority, other than in connection with the potential issue of
shares pursuant to the company's employee share and incentive
plans.
The purpose of resolution 13 is to authorise the directors to
allot new shares pursuant to the general authority given by
resolution 12 in connection with a pre-emptive offer or offers to
holders of other equity securities if required by the rights
of those securities or as the board otherwise considers
necessary, or otherwise up to an aggregate nominal amount of
£401,500 (40,150,000 ordinary shares). This aggregate nominal
amount represents approximately 25% of the issued ordinary share
capital of the company at 30 July
2015. Whilst such authority is in excess of the 5% of
existing issued ordinary share capital which is commonly accepted
and recommended for larger listed companies, it will provide
additional flexibility which the directors believe is in the best
interests of the group in its present circumstances. The authority
sought under resolution 13 will expire on 31
December 2015. The directors intend to seek renewal of this
authority at future annual general meetings.
Rights and obligations attaching to shares
The rights and obligations attaching to the ordinary and
deferred shares are set out in the Articles of Association. Details
of the issued share capital are shown in note 21. Details of
employee share schemes are set out in the Directors Remuneration
Report and in note 22.
Each ordinary share carries the right to one vote at general
meetings of the company. Holders of deferred shares, which are of
negligible value, are not entitled to attend, speak or vote at any
general meeting of the company, nor are they entitled to receive
notice of general meetings.
Subject to the provisions of the Companies Act 2006, the rights
attached to any class may be varied with the consent of the holders
of three-quarters in nominal value of the issued shares of the
class or with the sanction of an extraordinary resolution passed at
a separate general meeting of the holders of the shares of the
class.
There are no restrictions on the transfer of the company’s
shares.
Voting rights
Votes may be exercised at general meetings in relation to the
business being transacted either in person, by proxy or, in
relation to corporate members, by corporate representative. The
Articles provide that forms of proxy shall be submitted not less
than 48 hours (excluding any part of a day that is not a working
day) before the time appointed for holding the meeting or adjourned
meeting.
No member shall be entitled to vote at a general meeting or at a
separate meeting of the holders of any class of shares in the
capital of the company, either in person or by proxy, in respect of
any share held by him unless all monies presently payable by him in
respect of that share have been paid. Furthermore, no shareholder
shall be entitled to attend or vote either personally or by proxy
at a general meeting or at a separate meeting of the holders of
that class of shares or on a poll if he has been served with a
notice after failing to provide the company with information
concerning interests in his shares required to be provided under
the Companies Act 2006.
Significant agreements and change of control
There are no agreements between the company and its directors or
employees that provide for compensation for loss of office or
employment that may occur because of a takeover bid. The company’s
share plans contain provisions relating to a change of control.
Outstanding awards and options would normally vest and become
exercisable on a change of control, subject to the satisfaction of
any performance conditions.
Dividend
The group has no revenues and the directors are unable to
recommend a dividend (2014 – nil).
Going concern
The directors have considered the business activities of the
group as well as its principal risks and uncertainties as set out
in this report. When doing so they have carefully applied the
guidance given in the Financial Reporting Council’s document “Going
concern and liquidity risk: Guidance for directors of UK companies
2009”.
The ongoing operations of the group are dependent on its ability
to raise adequate financing. The group relies on equity financing
and support from its shareholders to fund its working capital
requirements. The group will need to generate additional financial
resources in order to meet its planned business objectives and
continue as a going concern. Additional financing will be required
in the short term to continue the development of the group’s
properties and in the longer term to put the Parys Mountain Mine
into production.
The directors recognise the continuing operations of the group
are dependent upon its ability to raise adequate financing and that
this represents a material uncertainty which may cast significant
doubt about the group’s ability to continue as a going concern. The
directors have a reasonable expectation that the required financing
will be raised and are actively pursuing various financing options
with certain shareholders and financial institutions regarding
proposals for financing. The directors have reasonable expectations
that these financing discussions will be successful and therefore
the financial statements have been prepared on the going concern
basis.
Greenhouse Gas emissions
The group does not itself undertake any activities or processes
which lead to the production of greenhouse gases. The extent to
which its administrative and management functions result in
greenhouse gas emissions is slight and the directors do not believe
that any useful purpose would be served by attempting to quantify
the amounts of these emissions.
Post balance sheet events
See note 30.
Statement of directors’ responsibilities
The directors are responsible for preparing the annual report
and the financial statements. The directors are required to prepare
the financial statements for the group in accordance with
International Financial Reporting Standards as adopted by the
European Union (“IFRS”) and have also elected to prepare financial
statements for the company in accordance with IFRS. Company law
requires the directors to prepare group and parent company
financial statements for each financial year. Under that law they
are required to the prepare the financial statements in accordance
with IFRS, the Companies Act 2006 and, in relation to the group
financial statements, Article 4 of the IAS Regulation.
Under company law the directors must not approve the financial
statements unless they are satisfied that they give a true and fair
view of the state of affairs of the group and parent company
financial statements and of their profit and loss for that
period.
In preparing the financial statements the directors are required
to:
- select suitable accounting policies and then apply them
consistently;
- make judgements and estimates that are reasonable and
prudent;
- state that the financial statements comply with IFRSs as
adopted by the European Union; and
- prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the group and the parent
company will continue in business.
The directors confirm that they consider the annual report and
accounts, taken as a whole, is fair, balanced and understandable
and provides the information necessary for shareholders to assess
the company and group’s performance, business model and
strategy.
The directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the parent
company’s transactions and disclose with reasonable accuracy at any
time the financial position of the parent company and the group and
enable them to ensure that the financial statements comply with the
Companies Act 2006. They are also responsible for safeguarding the
assets of the parent company and the group and hence for taking
reasonable steps for the prevention and detection of fraud and
other irregularities.
Under applicable law and regulations the, the directors are also
responsible for preparing a Strategic Report, Directors’ Report,
Remuneration Report and Corporate Governance Statement that comply
with that law and those regulations.
The directors are responsible for the maintenance and integrity
of the group website. Legislation in the United Kingdom governing the preparation and
dissemination of financial statements may differ from legislation
in other jurisdictions.
Each of the directors, whose names and functions are listed on
the inside rear cover, confirm that, to the best of their
knowledge:
- the group financial statements, which have been prepared in
accordance with IFRSs as adopted by the EU, give a true and fair
view of the assets, liabilities, financial position and loss of the
group; and
- the Strategic and Directors’ Reports include a fair review of
the development and performance of the business and the position of
the group, together with a description of the principal risks and
uncertainties that it faces.
Auditor
Each of the directors in office at the date of approval of the
annual report confirms that so far as they are aware there is no
relevant audit information of which the company’s auditor is
unaware and that each director has taken all of the steps which
they ought to have taken as a director in order to make themselves
aware of that information and to establish that the company’s
auditor is aware of that information. This confirmation is
given and should be interpreted in accordance with the provisions
of s418 of the Companies Act 2006.
A resolution to reappoint Mazars LLP as auditor and to authorise
the directors to fix their remuneration will be proposed at the
annual general meeting.
Approved by the board of directors and
signed on its behalf
Danesh
Varma
Company Secretary
31 July 2015
Independent auditor's report to the members of Anglesey Mining
plc
We have audited the financial statements of Anglesey Mining plc
for the year ended 31 March 2015
which comprise the Group Income Statement, the Group Consolidated
Statement of Comprehensive Income, the Group and Company Statement
of Financial Position, the Group and Company Statement of Changes
in Equity, the Group and Company Statement of Cash Flows and the
related notes. The financial reporting framework that has been
applied in their preparation is applicable law and International
Financial Reporting Standards (IFRSs) as adopted by the European
Union.
Respective responsibilities of directors and auditor
As explained more fully in the Directors’ Responsibilities
Statement on page 9, the directors are responsible for the
preparation of the financial statements and for being satisfied
that they give a true and fair view.
Our responsibility is to audit and express an opinion on the
financial statements in accordance with applicable law and
International Standards on Auditing (ISAs) (UK and Ireland). Those standards require us to comply
with the Auditing Practices Board’s Ethical Standards for
Auditors.
This report is made solely to the company’s members as a body in
accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our
audit work has been undertaken so that we might state to the
company’s members those matters we are required to state to them in
an auditor’s report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to
anyone other than the company and the company’s members as a body
for our audit work, for this report, or for the opinions we have
formed.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and
disclosures in the financial statements sufficient to give
reasonable assurance that the financial statements are free from
material misstatement, whether caused by fraud or error. This
includes an assessment of: whether accounting policies are
appropriate to the group’s and the parent company’s circumstances
and have been consistently applied and adequately disclosed, the
reasonableness of significant accounting estimates made by the
directors and the overall presentation of the financial statements.
In addition, we read all the financial and non-financial
information in the annual report in order to identify material
inconsistencies with the audited financial statements and to
identify any information that is apparently materially incorrect
based on, or materially inconsistent with, the knowledge acquired
by us in the course of performing the audit. If we become aware of
any apparent material misstatements or inconsistencies we consider
the implications for our report.
There are 7 legal entities accounting for 100% of the group’s
operating loss, 100% of net assets and 100% of total assets all of
which were subject to full scope audits for the year ended
31 March 2015. The audit of all the
entities within the group was undertaken by the group audit
team.
Our assessment and application of materiality
We apply the concept of materiality both in planning and
performing our audit, and in evaluating the effect of misstatements
on the financial statements and our audit. Materiality is used so
we can plan and perform our audit to obtain reasonable, rather than
absolute, assurance about whether the financial statements are free
from material misstatement. The level of materiality we set is
based on our assessment of the magnitude of misstatements that,
individually or in aggregate, could reasonably be expected to have
influence on the economic decisions of the users of the financial
statements.
Based on our professional judgement the level of overall
materiality we set for the group financial statements is outlined
below:
| Overall Group materiality: |
£380,000 |
| Benchmark applied: |
This has been
calculated with reference to the group’s net assets, of which it
represents approximately 3%. |
| Basis for chosen benchmark: |
Net assets represents
shareholders’ funds and we have determined it to be the principal
benchmark within the financial statements relevant to shareholders,
as the group has no revenues and is still exploring and evaluating
mineral sites in which it retains an interest. |
We agreed with the Audit Committee that we would report to it
all audit differences in excess of £11,000, as well as differences
below that threshold that, in our view, warranted reporting on
qualitative grounds. We also report to the Audit Committee on
disclosure matters that we identified during the course of
assessing the overall presentation of the financial statements.
Our assessment of the risks of material misstatement
The assessed risks of material misstatement described below are
those that had the greatest effect on our audit strategy, the
allocation of resources in the audit and directing the efforts of
the engagement team.
| The risk |
Our response |
Going
concern
The financial statements are prepared on a going concern basis in
accordance with IAS1 ‘Presentation of Financial Statements’. Given
the cash position of the group at the year end, the net current
assets of £6,293, the net cash outflows since the year end, and the
projected net cash outflows for the net 12 months there is a
potential material uncertainty that the group does not have
sufficient cash or other financial resources to continue in
operation for at least 12 months from the date of authorising these
financial statements. |
We evaluated the directors’ assessment of the group’s ability to
continue as a going concern. In particular, we reviewed and
challenged the cash flow forecasts including key assumptions to
assess the risk of the inability to meet liabilities as they fall
due. We have considered the group’s reliance on ongoing support
from its largest shareholder, Juno Limited, including its ability
to provide adequate funds for its current and future activities and
the availability of other sources of finance to the group to
support the going concern assumption.
In the absence of support from Juno Limited, the Directors consider
that the going concern status of the group would be dependent on
the raising of funds from share issues or from accessing
alternative sources of funding. These conditions indicate the
existence of a material uncertainty which may cast significant
doubt about the group and company’s ability to continue as a going
concern. Accordingly, as outlined below, without modifying our
opinion on the financial statements in respect of this matter, we
have included an emphasis of matter. |
Potential impairment
of capitalised costs associated with the exploration and evaluation
of the Parys Mountain mine site
The group has held rights to explore and mine the site for a number
of years but has not completed exploration and evaluation
activities and feasibility assessments to an extent where the site
has been confirmed as being commercially viable and mining
activities commenced. There is a risk that accounting criteria
associated with the capitalisation of exploration and evaluation
expenditure may no longer be appropriate and that capitalised costs
exceed the value in use. Any assessment of the value in use is
highly judgemental and is based on the directors’ assessment of a
number of factors, including: long term metal commodity prices, the
estimated mineral deposits from independent experts’ studies, costs
associated with mineral extraction and sale, discount rates and
exchange rate factors. |
Our audit work included, but was not restricted to, a review of the
directors’ assessment of the criteria for the capitalisation of
exploration and evaluation expenditure and whether there are any
indicators of impairment to capitalised costs. The directors
concluded that there were indicators of potential impairment,
however their assessment did not indicate that an impairment of the
asset was required.
Our work included a review of the integrity of the discounted cash
flow model used by the directors to make an assessment as to
whether impairment had occurred, as well as using our professional
scepticism to challenge and test the key assumptions for
sensitivity to the model. These key assumptions included: the
expected future revenue and costs associated with the extraction
and sale of the mineral deposits, future metal prices, currency
exchange rates, demand for the minerals and the discount rate
utilised in the financial model. Our work did not indicate that
impairment to exploration and evaluation assets was required. |
Potential impairment of the investment in the subsidiary, Parys
Mountain Mines Limited, in the company financial statements
The cost of the investment in and loan due from the subsidiary,
Parys Mountain Mines Limited, held in the balance sheet of the
company, is supported by the future cash flows associated with the
recovery of the exploration and evaluation assets following the
development of the Parys Mountain site held by Parys Mountain Mines
Limited. If there were impairment in the exploration and evaluation
assets, this would have a direct impact on the carrying value of
the investment in and loan due from the subsidiary, which may need
to be written down in the company’s accounts. |
In conjunction with our work associated with the potential
impairment of the exploration and evaluation assets held within
Parys Mountain Mine Limited, we considered whether there was an
indication that the cost of the investment in and loan due from the
subsidiary required writing down in the company. As there was
no impairment of the asset held by Parys Mountain Mine Limited,
there is no indication that the carrying value of the investment in
and loan due from the company was not recoverable. |
Accounting treatment
of Grangesberg Iron AB (“GIAB”), Eurang Limited and Eurmag
AB
During the year, Anglesey Mining Plc acquired a 6% interest in
Grangesberg Iron AB through a special purpose subsidiary vehicle
Angmag AB. An Option and Control Agreement also gave the
Company the right to acquire the entire share capital of Eurang
Limited which through its 100% subsidiary Eurmag AB, holds a 51%
shareholding in GIAB. There is a risk that the terms of this Option
and Control Agreement, together with a Restructuring Agreement and
Shareholder’s Agreement, relating to the 6% interest acquired, are
considered to result in the Company having the ability to exercise,
directly or indirectly, control of GIAB under the requirements of
IFRS10. |
We have reviewed management’s assessment of the contractual
agreements entered into, including the rights and restrictions
within these agreements, and their conclusion, under the
requirements of IFRS10, that Anglesey Mining Plc had the ability to
exercise control, during the year, over Angmag AB. Management
has concluded that Angmag AB should be designated as a subsidiary
and included in the Consolidated Financial Statements of Anglesey
Mining Plc.
Management’s assessment of the contractual agreements entered into,
including the rights and restrictions within these agreements,
concluded that under the requirements of IFRS10 they did not have
control over GIAB, Eurang Limited or Eurmag AB.
However, management considered that the ability to exert
significant influence over GIAB existed during the Option and
Control Agreement period, thereby identifying GIAB as an associate
of the company. No transactions of GIAB have been accounted for as
an associate in the financial statements as management has
concluded that the impact is immaterial. Whilst we consider
that under the requirements of IFRS during the period of
significant influence the interest should have been recognised as
an associate, the amounts and associated disclosures are not
material to the Group financial statements. |
The Audit Committee’s consideration of these risks is set out on
pages 15 and 16.
The audit procedures relating to the above mentioned matters
were designed in the context of our audit of the financial
statements as a whole. Our opinion on the financial statements is
not modified with respect to any of these risks, and we do not
express an opinion on these individual risks.
Opinion on the financial statements
In our opinion:
- the financial statements give a true and fair view of the state
of the group’s and of the parent company’s affairs as at
31 March 2015 and of the group’s loss
for the year then ended;
- the group financial statements have been properly prepared in
accordance with IFRSs as adopted by the European Union;
- the parent company financial statements have been properly
prepared in accordance with IFRSs as adopted by the European Union
and as applied in accordance with the provisions of the Companies
Act 2006; and
- the financial statements have been prepared in accordance with
the requirements of the Companies Act 2006 and, as regards the
group financial statements, Article 4 of the IAS Regulation.
Emphasis of matter – Going concern
In forming our opinion on the financial statements, which is not
modified in this regard, we have considered the adequacy of the
disclosure made in note 2 to the financial statements concerning
the Group’s ability to continue as a going concern. The Group
incurred a net cash outflow of £192,224 during the year ended
31 March 2015 and, at that date it
had net current assets of £6,293. These conditions, along with the
other matters explained in note 2 to the financial statements,
indicate the existence of a material uncertainty which may cast
significant doubt about the company’s ability to continue as a
going concern. The financial statements do not include the
adjustments that would result if the company was unable to continue
as a going concern.
Opinion on other matters prescribed by the Companies Act
2006
In our opinion except for the effects of the matter described in
the Basis for Qualified Opinion paragraph:
- the part of the Directors’ Remuneration Report to be audited
has been properly prepared in accordance with the Companies Act
2006;
- the information given in the Strategic Report and the
Directors’ Report for the financial year for which the financial
statements are prepared is consistent with the financial
statements; and
- the information given in the Corporate Governance Statement
with respect to internal control and risk management systems in
relation to financial reporting processes and about share capital
is consistent with the financial statements and rules 7.2.5 and
7.2.6 of the Disclosure and Transparency Rules.
Matters on which we are required to report by exception
We have nothing to report in respect of the following:
Under the International Standards on Auditing (ISAs) (UK and
Ireland), we are required to
report to you if, in our opinion, information in the annual report
is:
- materially inconsistent with the information in the audited
financial statements; or
- apparently materially incorrect based on, or materially
inconsistent with, our knowledge of the company acquired in the
course of performing our audit; or
- otherwise misleading.
In particular we are required to consider whether we have
identified any inconsistencies between our knowledge acquired
during the audit and the directors’ statement that they consider
the annual report is fair, balanced and understandable and whether
the annual report discloses those matters that we communicated to
the audit committee which we consider should have been
disclosed.
Under the Companies Act 2006, we are required to report to you,
if in our opinion:
- adequate accounting records have not been kept, or returns
adequate for our audit have not been received from branches not
visited by us; or
- the parent company financial statements and the part of the
Directors’ Remuneration Report to be audited are not in agreement
with the accounting records and returns; or
- certain disclosures of directors’ remuneration specified by law
are not made; or
- we have not received all the information and explanations we
require for our audit; or
- a Corporate Governance Statement has not been prepared by the
company.
Under the Listing Rules we are required to review:
- the directors’ statement, set out on page 8, in relation to
going concern; and
- the part of the Corporate Governance Statement relating to the
company’s compliance with the provisions of the UK Corporate
Governance Code specified for our review.
Richard Metcalfe (Senior
Statutory Auditor)
for and on behalf of Mazars LLP
Chartered Accountants and Statutory Auditor
Tower Bridge House, St. Katharine’s Way, London, E1W 1DD
Date: 31 July 2015
Group income statement
All attributable to equity holders of
the company
|
|
Notes |
Year
ended 31 March 2015 |
Year
ended 31 March 2014 |
| All
operations are continuing |
|
£ |
£ |
|
Revenue |
|
- |
- |
|
Expenses |
|
(355,071) |
(353,455) |
|
Impairment of
investment |
14 |
(1,231,218) |
(5,451,267) |
|
Exchange
difference on
investment impairment |
14 |
(26,766) |
(1,255,280) |
|
Investment
income |
6 |
882 |
2,630 |
|
Finance
costs |
7 |
(119,863) |
(112,590) |
|
Foreign exchange
loss |
|
(4,574) |
(3,741) |
|
|
|
|
|
|
Loss before tax |
4 |
(1,736,610) |
(7,173,703) |
|
|
|
|
|
|
Tax |
8 |
- |
- |
|
|
|
|
|
|
Loss for the period |
|
(1,736,610) |
(7,173,703) |
|
|
|
|
|
|
Loss per
share |
|
|
|
|
Basic - pence
per share |
9 |
(1.1)p |
(4.5)p |
|
Diluted - pence
per share |
9 |
(1.1)p |
(4.5)p |
|
|
|
|
|
Group consolidated statement of comprehensive income
|
Loss for the period |
|
(1,736,610) |
(7,173,703) |
|
|
Other comprehensive
income: |
|
|
|
|
|
Exchange
difference on
translation of foreign holding |
|
(31,163) |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive loss
for
the year |
(1,767,773) |
(7,173,703) |
|
|
|
|
|
|
|
Statement of financial position of the
group
|
|
|
31
March 2015 |
31
March 2014 |
|
|
|
Notes |
£ |
£ |
|
|
Assets |
|
|
|
|
|
Non-current
assets |
|
|
|
|
|
Mineral property
exploration and evaluation |
10 |
14,877,193 |
14,802,048 |
|
|
Property, plant
and equipment |
11 |
204,687 |
204,687 |
|
|
Investments |
14 |
86,660 |
1,257,985 |
|
|
Deposit |
15 |
122,806 |
122,596 |
|
|
|
|
|
|
|
|
|
|
15,291,346 |
16,387,316 |
|
|
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
Other
receivables |
16 |
30,977 |
17,017 |
|
|
Cash and cash
equivalents |
17 |
96,873 |
289,097 |
|
|
|
|
|
|
|
|
|
|
127,850 |
306,114 |
|
|
|
|
|
|
|
|
Total assets |
|
15,419,196 |
16,693,430 |
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
Trade and other
payables |
18 |
(121,557) |
(99,647) |
|
|
|
|
|
|
|
|
|
17 |
|
|
|
|
|
|
(121,557) |
(99,647) |
|
|
|
|
|
|
|
|
Net current
assets |
|
6,293 |
206,467 |
|
|
|
|
|
|
|
|
Non-current
liabilities |
|
|
|
|
|
Loans |
19 |
(2,882,502) |
(2,418,873) |
|
|
Long term
provision |
20 |
(50,000) |
(42,000) |
|
|
|
|
|
|
|
|
|
|
(2,932,502) |
(2,460,873) |
|
|
|
|
|
|
|
|
Total liabilities |
|
(3,054,059) |
(2,560,520) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets |
|
12,365,137 |
14,132,910 |
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
Share
capital |
21 |
7,116,914 |
7,116,914 |
|
|
Share
premium |
|
9,848,949 |
9,848,949 |
|
|
Currency
translation reserve |
|
(31,163) |
- |
|
|
Retained
losses |
|
(4,569,563) |
(2,832,953) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total
shareholders' equity |
|
12,365,137 |
14,132,910 |
|
|
|
|
|
|
|
The financial statements of Anglesey Mining plc were approved by
the board of directors, authorised
for issue on 31 July 2015 and signed
on its behalf by:
John F. Kearney,
Chairman
Danesh Varma,
Finance Director
Statement of financial position of the
company
|
|
|
31
March 2015 |
31
March 2014 |
|
|
|
Notes |
£ |
£ |
|
|
Assets |
|
|
|
|
|
Non-current
assets |
|
|
|
|
|
Investments |
13 |
14,117,026 |
13,977,564 |
|
|
|
|
|
|
|
|
|
|
14,117,026 |
13,977,564 |
|
|
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
Other
receivables |
16 |
13,945 |
13,793 |
|
|
Cash and cash
equivalents |
17 |
72,088 |
267,045 |
|
|
|
|
|
|
|
|
|
|
86,033 |
280,838 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
14,203,059 |
14,258,402 |
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
Trade and other
payables |
18 |
(102,660) |
(86,007) |
|
|
|
|
|
|
|
|
|
|
(102,660) |
(86,007) |
|
|
|
|
|
|
|
|
Net current
(liabilities)/assets |
|
(16,627) |
194,831 |
|
|
|
|
|
|
|
|
Non-current
liabilities |
|
|
|
|
|
Loan |
19 |
(2,659,916) |
(2,418,873) |
|
|
|
|
|
|
|
|
|
|
(2,659,916) |
(2,418,873) |
|
|
|
|
|
|
|
|
Total
liabilities |
|
(2,762,576) |
(2,504,880) |
|
|
|
|
|
|
|
|
Net assets |
|
11,440,483 |
11,753,522 |
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
Share
capital |
21 |
7,116,914 |
7,116,914 |
|
|
Share
premium |
|
9,848,949 |
9,848,949 |
|
|
Retained
losses |
|
(5,525,380) |
(5,212,341) |
|
|
|
|
|
|
|
|
Shareholders' equity |
|
11,440,483 |
11,753,522 |
|
|
|
|
|
|
|
The financial statements of Anglesey Mining plc registered
number 1849957 were approved by the
board of directors and authorised for issue on 31 July 2015, and signed on its behalf by:
John F. Kearney,
Chairman
Danesh Varma,
Finance Director
Statements of changes in equity
All attributable to equity holders of
the company.
|
Group |
Share
capital |
Share
premium |
Currency translation reserve |
Retained (losses)/ earnings |
Total |
|
|
£ |
£ |
£ |
£ |
£ |
|
Equity at 1
April 2013 |
7,116,914 |
9,848,949 |
- |
4,340,750 |
21,306,613 |
|
|
|
|
|
|
|
|
Total
comprehensive loss for the year: |
|
|
|
|
|
|
Loss for the
year |
- |
- |
- |
(7,173,703) |
(7,173,703) |
|
Total
comprehensive loss for the year |
- |
- |
- |
(7,173,703) |
(7,173,703) |
|
|
|
|
|
|
|
|
Equity at 31
March 2014 |
7,116,914 |
9,848,949 |
- |
(2,832,953) |
14,132,910 |
|
|
|
|
|
|
|
|
Total
comprehensive loss for the year: |
|
|
|
|
|
|
Loss for the
year |
- |
- |
- |
(1,736,610) |
(1,736,610) |
|
Exchange
difference on
translation of foreign holding |
- |
- |
(31,163) |
- |
(31,163) |
|
|
|
|
|
|
|
|
Total
comprehensive loss for the year |
- |
- |
(31,163) |
(1,736,610) |
(1,767,773) |
|
|
|
|
|
|
|
|
Equity at 31
March 2015 |
7,116,914 |
9,848,949 |
(31,163) |
(4,569,563) |
12,365,137 |
|
|
|
|
|
|
|
|
Company |
|
Share
capital £ |
Share
premium £ |
Retained
losses £ |
Total
£ |
|
Equity at 1
April 2013 |
|
7,116,914 |
9,848,949 |
(4,736,665) |
12,229,198 |
|
|
|
|
|
|
|
|
Total
comprehensive loss for the year: |
|
|
|
|
|
|
Loss for the
year |
|
- |
- |
(475,676) |
(475,676) |
|
|
|
|
|
|
|
|
Total
comprehensive loss for the year |
|
- |
- |
(475,676) |
(475,676) |
|
|
|
|
|
|
|
|
Equity at 31
March 2014 |
|
7,116,914 |
9,848,949 |
(5,212,341) |
11,753,522 |
|
|
|
|
|
|
|
|
Total
comprehensive loss for the year: |
|
|
|
|
|
|
Loss for the
year |
|
- |
- |
(313,039) |
(313,039) |
|
Total
comprehensive loss for the year |
|
- |
- |
(313,039) |
(313,039) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity at 31
March 2015 |
|
7,116,914 |
9,848,949 |
(5,525,380) |
11,440,483 |
|
|
|
|
|
|
|
Statement of cash flows of the
group
|
|
Notes |
Year
ended 31 March 2015 |
Year
ended 31 March 2014 |
|
|
|
|
£ |
£ |
|
|
Operating activities |
|
|
|
|
|
Loss for the
period |
|
(1,736,610) |
(7,173,703) |
|
|
Adjustments
for: |
|
|
|
|
|
Investment
income |
6 |
(882) |
(2,630) |
|
|
Finance
costs |
7 |
119,863 |
112,590 |
|
|
Impairment of
investment |
14 |
1,231,218 |
5,451,267 |
|
|
Exchange
difference on
investment impairment |
14 |
26,766 |
1,255,280 |
|
|
Foreign exchange
movement |
|
4,574 |
3,741 |
|
|
|
|
|
|
|
|
|
|
(355,071) |
(353,455) |
|
|
Movements in
working capital |
|
|
|
|
|
(Increase)/decrease in receivables |
|
(15,867) |
23,222 |
|
|
Increase in
payables |
|
4,934 |
15,491 |
|
|
|
|
|
|
|
| Net
cash used in operating activities |
|
(366,004) |
(314,742) |
|
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
Investment
income |
|
672 |
2,238 |
|
|
Mineral property
exploration and evaluation |
|
(69,888) |
(65,003) |
|
|
Investment |
|
(74,940) |
- |
|
|
|
|
|
|
|
| Net
cash used in investing activities |
(144,156) |
(62,765) |
|
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
Loans |
|
322,510 |
- |
|
|
Loan
received |
|
|
- |
|
|
|
|
|
|
|
| Net
cash generated from financing activities |
|
322,510 |
- |
|
|
|
|
|
|
|
Net
decrease in cash
and cash
equivalents |
(187,650) |
(377,507) |
|
| Cash
and cash equivalents at start of year |
|
289,097 |
670,345 |
|
|
Foreign exchange movement |
|
(4,574) |
(3,741) |
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of year |
17 |
96,873 |
289,097 |
|
|
|
|
|
|
|
Statement of cash flows of the
company
|
|
Notes |
Year
ended 31 March 2015 |
Year
ended 31 March 2014 |
|
|
|
£ |
£ |
|
Operating activities |
|
|
|
|
Loss for the
period |
23 |
(313,039) |
(475,676) |
|
Adjustments
for: |
|
|
|
|
Investment
income |
|
(477) |
(2,013) |
|
Finance
costs |
|
116,043 |
112,590 |
|
|
|
|
|
|
|
|
(197,473) |
(365,099) |
|
Movements in
working capital |
|
|
|
|
(Increase)/decrease in receivables |
|
(152) |
12,309 |
|
Increase in
payables |
|
16,653 |
15,491 |
|
|
|
|
|
| Net
cash used in operating activities |
|
(180,972) |
(337,299) |
|
|
|
|
|
|
Investing activities |
|
|
|
|
Interest
income |
|
477 |
2,013 |
|
Investments and
long term loans |
|
(139,462) |
(20,884) |
|
|
|
|
|
| Net
cash used in investing activities |
|
(138,985) |
(18,871) |
|
|
|
|
|
|
Financing activities |
|
|
|
|
Loan from Juno
Limited |
|
125,000 |
- |
|
|
|
|
|
| Net
cash generated from financing activities |
|
125,000 |
- |
|
|
|
|
|
| Net
decrease in cash and cash equivalents |
|
(194,957) |
(356,170) |
| Cash
and cash equivalents at start of period |
|
267,045 |
623,215 |
|
|
|
|
|
| Cash
and cash equivalents at end of period |
17 |
72,088 |
267,045 |
|
|
|
|
|
Notes to the accounts
1 General information
Anglesey Mining plc is domiciled and incorporated in
England and Wales under the Companies Act. The nature of
the group’s operations and its principal activities are set out in
note 3 and in the strategic report. The registered office address
is as shown on the rear cover.
These financial statements are presented in pounds sterling
because that is the currency of the primary economic environment in
which the group has been operating. Foreign operations are included
in accordance with the policies set out in note 2.
2 Significant accounting
policies
Basis of Accounting
The group and company financial statements have been prepared in
accordance with International Financial Reporting Standards (IFRS)
as adopted by the European Union and therefore the group financial
statements comply with Article 4 of the EU IAS Regulation.
The financial statements have been prepared on the historical
cost basis except for the fair valuation of certain financial
assets. The principal accounting policies adopted are set out
below.
Going concern
The financial statements are prepared on a going concern basis.
The validity of the going concern basis is dependent on finance
being available for the continuing working capital requirements of
the group for the foreseeable future, being a period of at least
twelve months from the date of approval of the accounts. The
ongoing operations of the group are dependent on its ability to
raise adequate financing. The group relies on equity financing and
support from its shareholders to fund its working capital
requirements. The group will need to generate additional financial
resources in order to meet its planned business objectives and
continue as a going concern. Additional financing will be required
in the short term to continue the development of the group’s
properties and in the longer term to put the Parys Mountain Mine
into production.
The directors recognise the continuing operations of the group
are dependent upon its ability to raise adequate financing. The
directors have a reasonable expectation that the required financing
will be raised and are actively pursuing various financing options
with certain shareholders and financial institutions regarding
proposals for financing. The directors have reasonable expectations
that these financing discussions will be successful and therefore
the financial statements have been prepared on the going concern
basis.
Basis of consolidation
The consolidated financial statements incorporate the financial
statements of the company and entities controlled by the company
(its subsidiaries) made up to 31 March each year. Control is
achieved where the company has the power to govern the financial
and operating policies of an investee entity so as to obtain
benefits from its activities.
On acquisition, the assets and liabilities and contingent
liabilities of a subsidiary are measured at their fair values at
the date of acquisition. Any excess of the cost of acquisition over
the fair values of the identifiable net assets acquired is
recognised as goodwill. Any deficiency of the cost of acquisition
below the fair values of the identifiable net assets acquired (i.e.
discount on acquisition) is credited to the income statement in the
period of acquisition. The results of subsidiaries acquired or
disposed of during the year are included in the group income
statement from the effective date of acquisition or up to the
effective date of disposal, as appropriate.
Where necessary, adjustments are made to the financial
statements of subsidiaries to bring the accounting policies used
into line with those used by the group. All intra-group
transactions, balances, income and expenses are eliminated on
consolidation.
Revenue recognition
Interest income is accrued on a time basis, by reference to the
principal outstanding and at the effective interest rate
applicable, which is the rate that exactly discounts estimated
future cash receipts through the expected life of the financial
asset to that asset’s net carrying amount.
Foreign currencies
Transactions in currencies other than pounds sterling are
recorded at the rates of exchange prevailing on the dates of the
transactions. At the end of each reporting period, monetary assets
and liabilities that are denominated in foreign currencies are
retranslated at the rates prevailing on the period end date.
Non-monetary assets and liabilities carried at fair value that are
denominated in foreign currencies are translated at the rates
prevailing at the date when the fair value was determined. Gains
and losses arising on retranslation are included in net profit or
loss for the period.
On consolidation, the assets and liabilities of the group’s
overseas operations are translated at exchange rates prevailing on
the period end date. Exchange differences arising, if any, are
classified as items of other comprehensive income and transferred
to the group’s translation reserve within equity.
Such translation differences are reclassified to profit or loss,
and recognised as income or as expense, in the period in which
there is a disposition of the operation.
Segmental analysis
Operating segments are identified on the basis of internal
reports about components of the group that are regularly reviewed
by the chief operating decision-maker.
Retirement benefit costs
Payments to defined contribution retirement benefit schemes are
charged as an expense as they fall due. There are no defined
benefit retirement schemes.
Equity-settled employee benefits
The group provides equity-settled benefits to certain employees.
Equity-settled employee benefits are measured at fair value at the
date of grant. The fair value determined at the grant date is
expensed on a straight-line basis over the vesting period, based on
the group’s estimate of shares that will eventually vest and
adjusted for the effect of non-market based vesting conditions.
Fair value is measured by use of a Black-Scholes model. The
expected life used in the model has been adjusted from the longer
historical average life, based on directors’ estimates of the
effects of non-transferability, exercise restrictions, market
conditions, age of recipients and behavioural considerations.
Taxation
Deferred tax is the tax expected to be payable or recoverable on
differences between the carrying amounts of assets and liabilities
in the financial statements and the corresponding tax bases used in
the computation of taxable profit, and is accounted for using the
period end liability method. Deferred tax liabilities are generally
recognised for all taxable temporary differences and deferred tax
assets are recognised to the extent that it is probable that
taxable profits will be available against which deductible
temporary differences can be utilised. Such assets and liabilities
are not recognised if the temporary difference arises from goodwill
or from the initial recognition (other than in a business
combination) of other assets and liabilities in a transaction that
affects neither the tax profit nor the accounting profit.
Deferred tax liabilities are recognised for taxable temporary
differences arising on investments in subsidiaries and associates,
and interests in joint ventures, except where the group is able to
control the reversal of the temporary difference and it is probable
that the temporary difference will not reverse in the foreseeable
future.
The carrying amount of any deferred tax assets is reviewed at
each period end date and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow
all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to
apply in the period when the liability is settled or the asset is
realised. Deferred tax is charged or credited in the income
statement, except when it relates to items charged or credited
directly to equity, in which case the deferred tax is also dealt
with in equity.
Property, plant and equipment
The group’s freehold land is stated in the statement of
financial position at cost. The directors consider that the
residual value of buildings, based on prices prevailing at the date
of acquisition and at each subsequent reporting date as if the
asset were already of the age and in the condition expected at the
end of its useful life, is such that any depreciation would not be
material. The carrying value is reviewed annually to consider
whether it exceeds the recoverable value in which case any
impairment in value would be charged immediately to the income
statement.
Plant and office equipment are stated in the statement of
financial position at cost, less depreciation. Depreciation is
charged on a straight line basis at the annual rate of 25%.
Residual values and the useful lives of these assets are also
reviewed annually.
Intangible assets - mineral property
exploration and evaluation costs
Intangible assets are stated in the statement of financial
position at cost, less accumulated amortisation and provisions for
impairment.
Costs incurred prior to obtaining the legal rights to explore a
mineral property are expensed immediately to the income statement.
Mineral property exploration and evaluation costs are capitalised
until the results of the projects, which are usually based on
geographical areas, are known; these include an allocation of
administrative and management costs as determined appropriate to
the project by management.
Where a project is successful, the related exploration costs are
amortised over the life of the estimated mineral reserve on a unit
of production basis. Where a project is terminated, the related
exploration costs are expensed immediately. Where no
internally-generated intangible asset can be recognised,
development expenditure is recognised as an expense in the period
in which it is incurred.
Impairment of tangible and intangible
assets
The values of mineral properties are reviewed annually for
indications of impairment and when these are present a review to
determine whether there has been any impairment is carried out.
They are written down when any impairment in their value has
occurred and are written off when abandoned. Where a provision is
made or reversed it is dealt with in the income statement in the
period in which it arises.
Investments
Investments in subsidiaries are shown at cost less provisions
for impairment in value. Income from investments in subsidiaries
together with any related withholding tax is recognised in the
income statement in the period to which it relates.
Investments which are not subsidiaries are shown at cost unless
there is a practical method of determining a reliable fair value,
in which case that fair value is used.
Provisions
Provisions are recognised when the group has a present
obligation as a result of a past event and it is probable that the
group will be required to settle that obligation. Provisions are
measured at the directors’ best estimate of the expenditure
required to settle that obligation at the end of the reporting
period and are discounted to present value where the effect is
material.
Financial instruments
Financial assets and liabilities are initially recognised and
subsequently measured based on their classification as “loans and
receivables”, “available for sale financial assets” or “other
financial liabilities”.
Loans and receivables are non-derivative financial assets with
fixed or determinable payments that are not quoted in an active
market. They are included in current assets, except where they
mature more than 12 months after the period end date: these are
classified as non-current assets.
(a) Trade and other receivables. Trade and
other receivables are measured at initial recognition at fair value
and are subsequently measured at amortised cost using the effective
interest rate method. Appropriate allowances for estimated
irrecoverable amounts are recognised in the income statement when
there is objective evidence that the asset is impaired.
(b) Cash and cash equivalents. The group considers
all highly liquid investments which are readily convertible into
known amounts of cash and have a maturity of three months or less
when acquired to be cash equivalents. The management believes that
the carrying amount of cash equivalents approximates fair value
because of the short maturity of these financial instruments.
(c) Available for sale financial assets.
Listed shares held by the group that are traded in an active market
are classified as being AFS and are stated at fair value. Gains and
losses arising from changes in fair value are recognised in other
comprehensive income and accumulated in the investments revaluation
reserve with the exception of impairment losses and foreign
exchange gains and losses on monetary assets, which are recognised
directly in profit or loss. Where the investment is disposed of or
is determined to be impaired, the cumulative gain or loss
previously recognised in the investments revaluation reserve is
reclassified to profit or loss.
Unlisted shares held by the group that are classified as being
AFS are stated at cost on the basis that the shares are not quoted
and a reliable fair value is not able to be estimated.
Dividends on AFS equity instruments are recognised in profit or
loss when the group’s right to receive the dividends is
established.
The fair value of AFS monetary assets denominated in a foreign
currency is determined in that foreign currency and translated at
the spot rate at the balance sheet date. The foreign exchange gains
and losses that are recognised in profit or loss are determined
based on amortised cost of the monetary asset. Other foreign
exchange gains and losses are recognised in other comprehensive
income.
(d) Trade and other payables. Trade payables are
not interest bearing and are initially recognised at fair value and
subsequently measured at amortised cost using the effective
interest rate method.
(e) Deposits. Deposits are recognised at fair value
on initial recognition and are subsequently measured at amortised
cost using the effective interest rate method.
(f) Loans. Loans are recognised at fair value on
initial recognition and are subsequently measured at amortised cost
using the effective interest rate method.
Equity instruments
Equity instruments issued by the company are recorded at the
proceeds received, net of direct issue costs.
Leases
Leases are classified as finance leases whenever the terms of
the lease transfer substantially all the risks and rewards of
ownership to the lessee. All other leases are classified as
operating leases.
Mining lease payments are recognised as an operating expense in
the income statement on a straight line basis over the lease term
unless they relate to mineral property exploration and evaluation
in which case they are capitalised. There are no finance
leases or other operating leases.
New accounting standards
The group and company have adopted the following new accounting
standards and interpretations:
IFRS 10 Consolidated Financial Statements: Issued
October 2012; Effective – Annual
periods beginning on or after 1 January
2014
IFRS 11 Joint Arrangements: Original issue; Issued –
May 2011; Effective – Annual periods
beginning on or after 1 January
2014
IFRS 12 Disclosure of Interests in Other Entities:
Original issue; Issued – May 2011;
Effective – Annual periods beginning on or after 1 January 2014
IAS 27 Separate Financial Statements and IAS 28
Investments in Associates and Joint Ventures: Original issue;
Issued – May 2011; Effective – Annual
periods beginning on or after 1 January
2014
There has been no impact of adopting the standards.
The group and company have adopted the amendments to the
following interpretation:
IFRS 10 Consolidated Financial Statements, IFRS 12
Disclosure of Interests in Other Entities and IAS 27 Separate
Financial Statements: Amendment relates to investment entities;
Effective – Annual periods beginning on or after 1 January 2014
IAS 32 Financial Instruments: Amendment relates to
the offsetting of financial assets and liabilities; Effective –
Annual periods beginning on or after 1
January 2014
IAS 36 Impairment of Assets: Amendment relates to
the recoverable amount disclosures for non-financial assets;
Effective – Annual periods beginning on or after 1 January 2014
IAS 39 Financial Instruments: Recognition and Measurement:
Amendment relates to the novation of derivatives and continuing of
hedge accounting; Effective – Annual periods beginning on or after
1 January 2014
There has been no impact of adopting the amendments.
The group and the company have not applied the following IFRS,
IAS and IFRICs that are applicable and have been issued but are not
yet effective:
IFRIC 21 Levies; Effective - Annual periods beginning on or
after 17 June 2014
IFRS 14 Regularity Deferral Accounts: Original issue; Issued –
January 2014; Effective – Annual
periods beginning on or after 1 January
2016
IFRS 15 Revenue from contracts with customers: Original issue;
Issued – May 2014; Effective – Annual
periods beginning on or after 1 January
2017
IFRS 9 Financial Instruments; Original issue; Issued –
November 2009; Effective – Annual
periods beginning on or after 1 January
2018
IAS 1 Presentation of Financial Information: Amendment relates
to the disclosure initiative; Effective – Annual periods beginning
on or after 1 January 2016
IAS16 Property, plant and equipment and IAS 38 Intangible
Assets: Amendments regarding the clarification of acceptable
methods of depreciation and amortisation; Amended May 2014; Effective for Annual periods beginning
on or after 1 January 2016
IAS 19 Employee Benefits: Amendment relating to the
accounting for contributions from employees or third parties to
defined benefit plans; Effective – Annual periods beginning on or
after 1 February 2015
IAS 27 Separate Financial Statements (as amended in 2011):
Original issue; Issued – May 2011;
Effective – Annual periods beginning on or after 1 January 2016
IFRS 10 Consolidated Financial Statements and IAS 28 Investment
in Associates and Joint Ventures: Amendment relating to the sale or
contribution of assets between an investor and its associate or
joint venture; Effective – Annual periods beginning on or after
1 January 2016
IFRS 10 Consolidation Financial Statements, IFRS 12 Disclosure
of Interests in Other Entities and IAS 28 Investment in Associates
and Joint Ventures: Amendments relate to investment entities,
applying the consolidation exemption; Effective – Annual periods
beginning on or after 1 January
2016
IFRS 11 Joint Arrangements: Amendment relating to the accounting
for acquisition of interests in joint operations; Effective –
Annual periods beginning on or after 1
January 2016
The directors expect that the adoption of the above
pronouncements will have no material impact to the financial
statements in the period of initial application other than
disclosure.
The directors do not consider the adoption of the amendments
resulting from the Annual Improvements 2010 - 2012 cycle will
result in a material impact on the financial information of the
group and company. These amendments to IFRS2, IFRS3, IFRS8 IAS 16,
IAS24 and IAS38 are effective for accounting periods beginning on
or after 1 February 2015.
The directors do not consider the adoption of the amendments
resulting from the Annual Improvements 2011 - 2013 cycle will
result in a material impact on the financial information of the
group and company. These amendments to IFRS3, IFRS13 and IAS40 are
effective for accounting periods beginning on or after 1 July 2014.
The directors do not consider the adoption of the amendments
resulting from the Annual Improvements 2012 - 2014 cycle will
result in a material impact on the financial information of the
group and company. These amendments to IFRS 5, IFRS 7, IAS 19 and
IAS 34 are effective for accounting periods beginning on or after
1 January 2016.
There have been no other new or revised International Financial
Reporting Standards, International Accounting Standards or
Interpretations that are in effect since that last annual report
that have a material impact on the financial statements.
Judgements made in applying accounting
policies and key sources of estimation uncertainty
The following critical judgements have been made in the process
of applying the group’s accounting policies:
(a) In determining the treatment of exploration, evaluation and
development expenditures the directors are required to make
estimates and assumptions as to future events and circumstances.
There are uncertainties inherent in making such assumptions,
especially with regard to: ore resources and the life of a mine;
recovery rates; production costs; commodity prices and exchange
rates. Assumptions that are valid at the time of estimation may
change significantly as new information becomes available and
changes in these assumptions may alter the economic status of a
mining unit and result in resources or reserves being restated.
Operation of a mine and the receipt of cashflows from it are
dependent on finance being available to fund the development of the
property.
(b) In connection with possible impairment of assets the
directors assess each potentially cash generating unit annually to
determine whether any indication of impairment exists. The
judgements made when doing so are similar to those set out above
and are subject to the same uncertainties.
(c) The accounting treatment adopted for the group’s investment
in GIAB and the reasons for doing so are set out in note 14.
Nature and purpose of equity
reserves
The share premium reserve represents the consideration that has
been received in excess of the nominal value of shares on issue of
new ordinary share capital, less any direct costs of issue. The
currency translation reserve represents the variations on
revaluation of overseas foreign subsidiaries and associates.
The retained earnings reserve represents profits and losses
retained in previous and the current period.
3 Segmental
information
The group is engaged in the business of exploring and evaluating
the wholly-owned Parys Mountain project in North Wales, managing its interest in the
Grangesberg properties and has an investment in the Labrador iron
project in eastern Canada. In the
opinion of the directors, the group’s activities comprise one class
of business which is mine exploration, evaluation and development.
The group reports geographical segments; these are the basis on
which information is reported to the board. As yet there have been
no site expenses incurred in respect of the group’s interest in
Grangesberg.
| Income
statement analysis |
|
|
|
|
|
|
|
|
|
2015 |
|
2014 |
|
UK |
Sweden |
Canada |
Total |
|
UK |
Sweden |
Canada |
Total |
|
£ |
£ |
£ |
£ |
|
£ |
£ |
£ |
£ |
| Expenses |
(187,815) |
(167,256) |
- |
(355,071) |
|
(353,455) |
- |
- |
(353,455) |
Impairment of
investment |
- |
- |
(1,231,218) |
(1,231,218) |
|
- |
- |
(5,451,267) |
(5,451,267) |
Exchange
difference
on above |
- |
- |
(26,766) |
(26,766) |
|
- |
- |
(1,255,280) |
(1,255,280) |
| Investment income |
882 |
- |
- |
882 |
|
2,630 |
- |
- |
2,630 |
| Finance costs |
(119,863) |
- |
- |
(119,863) |
|
(112,590) |
- |
- |
(112,590) |
| Exchange rate
(loss) |
(4,574) |
- |
- |
(4,574) |
|
(3,741) |
- |
- |
(3,741) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss for the year |
(311,370) |
(167,256) |
(1,257,984) |
(1,736,610) |
|
(467,156) |
-
|
(6,706,547) |
(7,173,703) |
|
|
|
|
|
|
|
|
|
|
| Assets and
liabilities |
|
|
|
|
|
|
|
|
|
|
31 March 2015 |
|
31 March 2014 |
|
UK |
Sweden |
Canada |
Total |
|
UK |
Sweden |
Canada |
Total |
|
£ |
£ |
£ |
£ |
|
£ |
£ |
£ |
£ |
| Non-current
assets |
15,204,686 |
86,659 |
1 |
15,291,346 |
|
15,129,331 |
- |
1,257,985 |
16,387,316 |
| Current assets |
123,364 |
4,486 |
- |
127,850 |
|
306,114 |
- |
- |
306,114 |
| Liabilities |
(2,831,473) |
(222,586) |
- |
(3,054,059) |
|
(2,560,520) |
- |
- |
(2,560,520) |
|
|
|
|
|
|
|
|
|
|
| Net
assets/liabilities |
12,496,577 |
(131,441) |
1 |
12,365,137 |
|
12,874,925 |
- |
1,257,985 |
14,132,910 |
|
|
|
|
|
|
|
|
|
|
4 Operating
result
| The loss
for the year has been arrived at after charging: |
|
|
|
|
2015 |
|
2014 |
|
|
£ |
|
£ |
|
| Fees payable to the
group's auditor: |
|
|
|
|
|
for the audit of the annual
accounts |
22,000 |
|
22,000 |
|
|
for the audit of subsidiaries'
accounts |
3,000 |
|
3,000 |
|
|
for other services - taxation
compliance |
2,500 |
|
3,150 |
|
|
for other services |
800 |
|
1,303 |
|
| Directors'
remuneration |
24,750 |
|
112,333 |
|
| Director's pension
contributions |
- |
|
6,667 |
|
| Foreign exchange
loss |
4,574 |
|
3,741 |
|
|
|
|
|
|
5 Staff costs
| The
average monthly number of persons employed (including executive
directors) was: |
|
|
|
|
|
|
|
2015 |
|
2014 |
|
| Administrative |
3 |
|
4 |
|
|
3 |
|
4 |
|
|
|
|
|
|
| Their aggregate
remuneration was: |
£ |
|
£ |
|
| Wages and
salaries |
33,985 |
|
104,998 |
|
| Social security
costs |
2,118 |
|
11,691 |
|
| Other pension
costs |
- |
|
6,667 |
|
|
|
|
|
|
|
36,103 |
|
123,356 |
|
|
|
|
|
|
Details of directors’ remuneration and share options are given
in the directors’ remuneration report.
6 Investment income
|
|
2015 |
|
2014 |
|
|
|
£ |
|
£ |
|
| Loans and
receivables |
|
|
|
|
|
| Interest on bank
deposits |
|
672 |
|
2,238 |
|
| Interest on site
re-instatement deposit |
15 |
210 |
|
392 |
|
|
|
|
|
|
|
|
|
882 |
|
2,630 |
|
|
|
|
|
|
|
7 Finance costs
|
|
2015 |
|
2014 |
|
| Loans and
payables |
|
£ |
|
£ |
|
| Loan interest to Juno
Limited |
19 |
116,043 |
|
112,590 |
|
| Loan interest to
Eurmag AB |
19 |
3,820 |
|
- |
|
|
|
|
|
|
|
|
|
119,863 |
|
112,590 |
|
|
|
|
|
|
|
For both loans the interest shown is accrued and not required to
be paid in cash.
8 Taxation
Activity during the year has generated trading losses for
taxation purposes which may be offset against investment income and
other revenues. Accordingly no provision has been made for
Corporation Tax. There is an unrecognised deferred tax asset at
31 March 2015 of £1.3 million
(2014 - £1.3 million) which, in view of the group’s trading
results, is not considered by the directors to be recoverable in
the short term. There are also capital allowances, including
mineral extraction allowances, of £12.4 million unclaimed and
available at 31 March 2015 (2014 -
£12.3 million). No deferred tax asset is recognised in respect
of these allowances.
|
2015 |
|
2014 |
|
|
£ |
|
£ |
|
| Current tax |
- |
|
- |
|
| Deferred tax |
- |
|
- |
|
|
|
|
|
|
| Total tax |
- |
|
- |
|
|
|
|
|
|
| Domestic
income tax is calculated at 21% of the estimated assessed profit
for the year. |
|
| In
2014 the rate used was 23% and the change this year is due to a
change in Corporation Tax |
|
| rates.
Taxation for other jurisdictions is calculated at the rates
prevailing in the relevant |
|
| jurisdictions. |
|
|
|
|
| The total
charge for the year can be reconciled to the accounting profit or
loss as follows: |
|
|
|
|
|
|
| Loss for the year |
(1,736,610) |
|
(7,173,703) |
|
|
|
|
|
|
| Tax at the domestic
income tax rate of 21% (2014 - 23%) |
(364,688) |
|
(1,649,952) |
|
| Tax effect
of: |
|
|
|
|
Expenses that are not
deductible
in
determining taxable result |
|
|
|
|
| Losses on interest in
investments |
364,688 |
|
1,649,952 |
|
|
|
|
|
|
| Total tax |
- |
|
- |
|
|
|
|
|
|
9 Earnings per
ordinary share
|
2015 |
|
2014 |
|
|
£ |
|
£ |
|
| Earnings |
|
|
|
|
| Loss for the year |
(1,736,610) |
|
(7,173,703) |
|
|
|
|
|
|
| Number of
shares |
|
|
|
|
| Weighted average
number of ordinary shares for the purposes of basic earnings per
share |
160,608,051 |
|
160,608,051 |
|
Shares deemed to be issued for no consideration in respect of
employee options |
|
|
|
|
Weighted average
number of ordinary shares
for the purposes of diluted earnings per share |
160,608,051 |
|
160,608,051 |
|
|
|
|
|
|
| Basic earnings per
share |
(1.1)p |
|
(4.5)p |
|
|
|
|
|
|
| Diluted earnings
per share |
(1.1)p |
|
(4.5)p |
|
|
|
|
|
|
As the group has a loss for the year ended 31 March 2015 the effect of the outstanding share
options is anti-dilutive and diluted earnings are reported to be
the same as basic earnings.
10 Mineral property exploration
and evaluation costs - group
|
Parys Mountain |
| Cost |
£ |
| At 1 April 2013 |
14,753,566 |
| Additions - site |
32,661 |
| Additions - rentals
& charges |
15,821 |
|
|
| At 31 March 2014 |
14,802,048 |
| Additions - site |
59,049 |
| Additions - rentals
& charges |
16,096 |
|
|
| At 31 March 2015 |
14,877,193 |
|
|
| Carrying
amount |
|
| Net book value
2015 |
14,877,193 |
| Net book value
2014 |
14,802,048 |
|
|
Included in the additions are mining lease expenses of £16,096
(2014 - £15,500).
Potential impairment of mineral
property
Accumulated exploration and evaluation expenditure in respect of
the Parys project is carried in the financial statements at cost,
less an impairment provision where there are grounds to believe
that the discounted present value of the future cash flows from the
project is less than the carrying value or there are other reasons
to indicate that the carrying value is unsuitable.
This year the directors carried out an impairment review with an
effective date of 26 March 2015. This
review was based on an estimate of discounted future cash flows
from the development and operation of the Parys Mountain project
over the initial projected mine life of 16 years. The directors
have used past experience and an assessment of future conditions,
together with external sources of information, to determine the
assumptions which were adopted in the preparation of a financial
model used to estimate the cashflows.
The key assumptions utilised were:
- Capital costs were estimated at current costs when the
expenditure is planned to be incurred; neither revenues nor
operating costs will take into account any inflation.
- Metal prices (long-term estimates): zinc 1.15 US$/lb; copper 3.25
US$/lb; lead 1.00 US$/lb;
silver US$18.00 per ounce and gold
US$1200 per ounce. Exchange rate
US$1.55/£.
- The discount rate of 10% applied to future cashflows is one
which reflects the directors’ current market assessment of the time
value of money and any risk factors which have not been adjusted
already in the preparation of the forecast.
The directors estimated the sensitivity of the assumptions used
in the cashflow model which would significantly affect the
discounted net present value of the projected Parys cashflows. The
figures which follow are the variation expressed in percent of each
specific assumption which would, on its own, reduce the calculated
net present value to the carrying value of the intangible asset in
the accounts: copper price -24%, zinc price -10%, lead price -21%,
capital expenditure +13%, mining costs +19%, all operating costs
including mining +10% and the discount rate +16%.
Based on the above parameters the directors believe that no
impairment provision is necessary or appropriate. However
estimates of the net present value of any project, and particularly
one like Parys Mountain, are always subject to many factors and
wide margins of error. The directors believe that the estimates and
calculations supporting their conclusions have been carefully
considered and are a fair representation of the projected financial
performance of the project.
Based on the review set out above the directors have determined
that no impairment provision is required in the financial
statements in respect of the carrying value of the Parys
property.
11 Property, plant and
equipment
| Company |
Freehold land and property |
Plant
& equipment |
Office
equipment |
Total |
| Cost |
£ |
£ |
£ |
£ |
| At 1 April 2013 |
- |
17,434 |
5,487 |
22,921 |
|
|
|
|
|
| At 31 March 2014 and
2015 |
- |
17,434 |
5,487 |
22,921 |
|
Depreciation |
|
|
|
|
| At 1 April 2013 |
- |
17,434 |
5,487 |
22,921 |
|
|
|
|
|
| At 31 March 2014 and
2015 |
- |
17,434 |
5,487 |
22,921 |
| Carrying
amount |
|
|
|
|
| At 31 March 2014 and
2015 |
- |
- |
- |
- |
12 Subsidiaries -
company
The subsidiaries of the company at 31
March 2015 and 2014 were as follows:
| Name of company |
Country of
incorporation |
Percentage
owned |
Principal
activity |
| Labrador Iron plc |
Isle of Man |
100% |
Holder of the
company’s investment in Labrador Iron Mines Holdings Limited |
| Anglo Canadian Exploration (Ace)
Limited |
England &
Wales |
100% |
Dormant |
| Parys Mountain Mines
Limited |
England &
Wales |
100% |
Development of the
Parys Mountain mining property |
| Parys Mountain Land
Limited |
England &
Wales |
100% |
Holder of part of the
Parys Mountain property |
| Parys Mountain Heritage Limited |
England &
Wales |
100% |
Holder of part of the
Parys Mountain property |
The following subsidiary was set up on 29
April 2014:
| Angmag Limited |
Sweden |
100% |
Holder of the
company’s investment in GIAB |
13 Investments -
company
|
Shares
at cost |
|
Loans |
|
Total |
|
|
£ |
|
£ |
|
£ |
|
| At 1 April 2013 |
100,103 |
|
13,856,577 |
|
13,956,680 |
|
| Advanced |
- |
|
20,884 |
|
20,884 |
|
|
|
|
|
|
|
|
| At 31 March 2014 |
100,103 |
|
13,877,461 |
|
13,977,564 |
|
| Advanced |
3,922 |
|
135,540 |
|
139,462 |
|
| Repaid |
- |
|
- |
|
- |
|
|
|
|
|
|
|
|
| At 31 March 2015 |
104,025 |
|
14,013,001 |
|
14,117,026 |
|
The realisation of investments is dependent on finance being
available for development and on a number
of other factors. No interest was charged in the year on
inter-company loans.
14 Investments - group
|
Labrador |
Grangesberg |
Total |
|
£ |
£ |
£ |
| At 31 March
2013 |
7,964,532 |
- |
7,964,532 |
| Impairment resulting
from adjustment to fair value |
(5,451,267) |
- |
(5,451,267) |
| Exchange difference
arising on adjustment above |
(1,255,280) |
- |
(1,255,280) |
| At 31 March
2014 |
1,257,985 |
- |
1,257,985 |
| Addition during
period |
- |
86,659 |
86,659 |
| Impairment resulting
from adjustment to nominal value |
(1,231,218) |
- |
(1,231,218) |
| Exchange difference
arising on adjustment above |
(26,766) |
- |
(26,766) |
|
|
|
|
| At 31 March
2015 |
1 |
86,659 |
86,660 |
|
|
|
|
LIM
On 2 April 2015, LIM instituted
proceedings in the Ontario Superior Court of Justice for a
financial restructuring by means of a plan of compromise or
arrangement under the Canadian Companies' Creditors Arrangement Act
in order to facilitate a restructuring and refinancing of its
business operations. In February
2015, to save the substantial costs associated with a stock
exchange listing and to maintain restructuring flexibility, LIM
voluntarily delisted its common shares and warrants from the
Toronto Stock Exchange, effective 23
February 2015, and the group’s investment in LIM is
now classified as ‘unquoted’. Based on these factors and the
difficulty of determining a fair market value the directors have
decided to write down the value of the LIM shares at 31 March 2015 to a nominal value of £1.
Consequent upon these changes this investment is reclassified as
Level 3 rather than Level 1 under the IFRS fair value hierarchy.
The company’s policy is to recognise these transfers on the
effective date of the event or change in circumstances that caused
the transfer.
At 31 March 2014 LIM was treated
as an investment in listed equity securities that present the group
with opportunity for return through dividend income and trading
gains. These shares were not held for trading and accordingly were
classified as ‘available for sale’ which was deemed to be the most
appropriate classification under IFRS. The LIM investment was
measured subsequent to initial recognition at fair value as ‘Level
1’ AFS based on the degree to which the fair value is observable.
Level 1 fair value measurements are those derived from quoted
priced (unadjusted) in active markets. At 31
March 2014 the value of the LIM investment was deemed to be
impaired given the decline in the share price.
Grangesberg
As explained in more detail in the strategic report, the group
has, through its Swedish subsidiary Angmag AB, acquired a 6%
ownership interest in GIAB, a Swedish company which holds rights
over the Grangesberg iron ore deposits. This investment has been
initially recognised and subsequently measured at cost, on the
basis that the shares are not quoted and a reliable fair value is
not able to be estimated. However the group also had, between
May 2014 and 30 March 2015, an option over a further 51% of
GIAB together with management direction of the activities of GIAB
subject to certain restrictions during the term of the option. The
option has been replaced by a right of first refusal expiring on
30 June 2018, while operational
management continues largely unaltered.
The board determined that it did not have the relevant
control over GIAB within the meaning of the provisions of
IFRS 10 during the term of the option, which would have required
consolidation of GIAB into the group’s financial statements with a
6% shareholding and a 94% minority interest.
Although the group did not have control during the option period
it did have significant influence over certain relevant activities
of GIAB. The group has not applied equity accounting for the period
during the year when it had significant influence as the directors
consider this would not have any material affect.
The income statement and statement of financial position of
Grangesberg Iron at 31 December 2014,
the latest date on which such accounts have been prepared,
converted into sterling at the rate in effect at the applicable
year end have been included below as an aid to disclosure.
There are no material adjustments in respect of significant
transactions or events in the period from 31
December 2014 and 31 March
2015 which affect these statements. These statements are
filed at the Bolagsverket: Swedish Companies Registration Office
and have been externally audited by a firm other than Mazars.
| Grangesberg Iron
AB |
|
|
|
|
|
| Profit and loss
statement |
Amounts in SEK |
|
Amounts in sterling |
|
|
|
|
|
|
|
1 Jan
2014- |
1 Jan
2013- |
|
1 Jan
2014- |
1 Jan
2013- |
|
31-Dec-14 |
31-Dec-13 |
|
31-Dec-14 |
31-Dec-13 |
|
|
|
|
|
|
| Net turnover |
- |
18,000 |
|
- |
1,684 |
| Other operating
income |
7,042,520 |
- |
|
579,631 |
- |
|
7,042,520 |
18,000 |
|
579,631 |
1,684 |
|
|
|
|
|
|
| Operating
expenses |
|
|
|
|
|
| Other external
expenses |
(1,211,902) |
(1,447,574) |
|
(99,745) |
(135,414) |
| Personnel costs |
- |
(2,079,389) |
|
- |
(194,517) |
|
Amortisation/depreciation or write-down of tangible and intangible
fixed assets |
- |
(3,098) |
|
- |
(290) |
| Other operating
expenses |
(241,837) |
(48,609) |
|
(19,904) |
(4,547) |
| Operating profit or
(loss) |
5,588,781 |
(3,560,670) |
|
459,982 |
(333,084) |
|
|
|
|
|
|
| Profit/(loss) from
financial items |
|
|
|
|
|
| Profit from other
securities and receivables which are fixed assets |
- |
8,127 |
|
- |
760 |
| Interest and similar
expenses |
(5,239,969) |
19,367 |
|
(431,273) |
1,812 |
| Profit/(loss) after
financial items |
348,812 |
(3,533,176) |
|
28,709 |
(330,512) |
|
|
|
|
|
|
| Profit/(loss) before
tax |
348,812 |
(3,533,176) |
|
28,709 |
(330,512) |
|
|
|
|
|
|
| Net profit/(loss) for
the year |
348,812 |
(3,533,176) |
|
28,709 |
(330,512) |
| Grangesberg Iron
AB |
|
|
|
|
|
| Balance
sheet |
Amounts in SEK |
|
Amounts in sterling |
|
|
|
|
|
|
|
31-Dec-14 |
31-Dec-13 |
|
31-Dec-14 |
31-Dec-13 |
| ASSETS |
|
|
|
|
|
| Fixed
assets |
|
|
|
|
|
| Intangible fixed
assets |
|
|
|
|
|
| Exploration and
evaluation assets |
57,985,731 |
53,151,181 |
|
4,772,488 |
4,972,047 |
|
57,985,731 |
53,151,181 |
|
4,772,488 |
4,972,047 |
|
|
|
|
|
|
| Total fixed
assets |
57,985,731 |
53,151,181 |
|
4,772,488 |
4,972,047 |
|
|
|
|
|
|
| Current
assets |
|
|
|
|
|
|
|
|
|
|
|
| Current
receivables |
|
|
|
|
|
| Trade debtors |
22,500 |
22,500 |
|
1,852 |
2,105 |
| Other receivables |
140,666 |
9,117 |
|
11,577 |
853 |
| Deferred charges and
accrued income |
9,201 |
18,218 |
|
757 |
1,704 |
|
172,367 |
49,835 |
|
14,187 |
4,662 |
|
|
|
|
|
|
| Cash and bank |
4,295,807 |
145,977 |
|
353,564 |
13,655 |
| Total current
assets |
4,468,174 |
195,812 |
|
367,751 |
18,317 |
|
|
|
|
|
|
| TOTAL
ASSETS |
62,453,905 |
53,346,993 |
|
5,140,239 |
4,990,364 |
|
|
|
|
|
|
| EQUITY AND
LIABILITIES |
|
|
|
|
|
| Equity |
|
|
|
|
|
| Restricted
equity |
|
|
|
|
|
| Share capital (0
shares) |
204,000 |
100,000 |
|
16,790 |
9,355 |
|
204,000 |
100,000 |
|
16,790 |
9,355 |
| Non-restricted
equity |
|
|
|
|
|
| Share premium
reserve |
8,176,750 |
- |
|
672,984 |
- |
| Profit brought
forward |
10,647,348 |
14,180,524 |
|
876,325 |
1,326,522 |
| Net profit/(loss) for
the year |
348,812 |
(3,533,176) |
|
28,709 |
(330,512) |
|
19,172,910 |
10,647,348 |
|
1,578,017 |
996,010 |
|
|
|
|
|
|
| Total
equity |
19,376,910 |
10,747,348 |
|
1,594,807 |
1,005,365 |
|
|
|
|
|
|
| Long-term
liabilities |
|
|
|
|
|
| Liabilities to
associated companies |
6,235,742 |
5,753,565 |
|
513,230 |
538,219 |
| Other long-term
liabilities |
35,962,910 |
25,502,318 |
|
2,959,910 |
2,385,624 |
|
42,198,652 |
31,255,883 |
|
3,473,140 |
2,923,843 |
|
|
|
|
|
|
| Current
liabilities |
|
|
|
|
|
| Trade creditors |
415,321 |
3,281,493 |
|
34,183 |
306,968 |
| Liabilities to group
companies |
- |
72,107 |
|
- |
6,745 |
| Other current
liabilities |
21,364 |
6,158 |
|
1,758 |
576 |
| Accrued expenses and
deferred income |
441,658 |
7,984,004 |
|
36,350 |
746,867 |
|
878,343 |
11,343,762 |
|
72,292 |
1,061,156 |
|
|
|
|
|
|
| TOTAL EQUITY AND
LIABILITIES |
62,453,905 |
53,346,993 |
|
5,140,239 |
4,990,364 |
15 Deposit
|
Group |
|
Company |
|
|
2015 |
|
2014 |
|
2015 |
|
2014 |
|
|
£ |
|
£ |
|
£ |
|
£ |
|
| Site re-instatement
deposit |
122,806 |
|
122,596 |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
This deposit was required and made under the terms of a Section
106 Agreement with the Isle of Anglesey County Council which has
granted planning permissions for mining at Parys Mountain. The
deposit is refundable upon restoration of the permitted area to the
satisfaction of the Planning Authority. The carrying value of the
deposit approximates to its fair value.
16 Other receivables
|
Group |
|
Company |
|
|
2015 |
|
2014 |
|
2015 |
|
2014 |
|
|
£ |
|
£ |
|
£ |
|
£ |
|
| Other |
30,977 |
|
17,017 |
|
13,945 |
|
13,793 |
|
|
|
|
|
|
|
|
|
|
The carrying value of the receivables approximates to their fair
value.
17 Cash
|
Group |
|
Company |
|
|
2015 |
|
2014 |
|
2015 |
|
2014 |
|
|
£ |
|
£ |
|
£ |
|
£ |
|
| Held in sterling |
72,571 |
|
269,044 |
|
72,088 |
|
267,045 |
|
| Held in Canadian
dollars |
19,816 |
|
20,053 |
|
- |
|
- |
|
| Held in US
dollars |
2,167 |
|
- |
|
- |
|
- |
|
| Held in Swedish
Krona |
2,319 |
|
- |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
96,873 |
|
289,097 |
|
72,088 |
|
267,045 |
|
|
|
|
|
|
|
|
|
|
The carrying value of the cash approximates to its fair
value.
18 Trade and other payables
|
Group |
|
Company |
|
|
2015 |
|
2014 |
|
2015 |
|
2014 |
|
|
£ |
|
£ |
|
£ |
|
£ |
|
| Trade creditors |
(71,538) |
|
(34,863) |
|
(58,142) |
|
(28,224) |
|
| Taxes |
(1,848) |
|
(11,029) |
|
(1,848) |
|
(11,029) |
|
| Other accruals |
(48,171) |
|
(53,755) |
|
(42,670) |
|
(46,754) |
|
|
|
|
|
|
|
|
|
|
|
(121,557) |
|
(99,647) |
|
(102,660) |
|
(86,007) |
|
|
|
|
|
|
|
|
|
|
The carrying value of the trade and other payables approximates
to their fair value.
19 Loan
|
Group |
|
Company |
|
|
2015 |
|
2014 |
|
2015 |
|
2014 |
|
|
£ |
|
£ |
|
£ |
|
£ |
|
| Loan from Juno
Limited |
(2,659,916) |
|
(2,418,873) |
|
(2,659,916) |
|
(2,418,873) |
|
| Loan from Eurmag
AB |
(222,586) |
|
- |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
(2,882,502) |
|
(2,418,873) |
|
(2,659,916) |
|
(2,418,873) |
|
|
|
|
|
|
|
|
|
|
Juno: Apart from an advance of £125,000 made in
December 2014 there has been no
change in the loan principal during the year. The loan is provided
under a working capital agreement, denominated in sterling,
unsecured and carries interest at 10% per annum on the principal
only. It is repayable from any future financing undertaken by the
company, or on demand following a notice period of 367 days. The
terms of the facility were approved by an independent committee of
the board. The carrying value of the loan approximates to its fair
value.
Eurmag: The loan arose during the year in connection with
the acquisition of the investment in Grangesberg. It is the subject
of a letter agreement, denominated in Swedish Krona, is unsecured
and carries interest at 6.5% per annum on the principal only. It is
repayable from any future financing undertaken by the company, or
on demand following a notice period of 367 days. The terms of the
facility were approved by an independent committee of the board.
The carrying value of the loan approximates to its fair value.
20 Provision
|
Group |
|
Company |
|
|
2015 |
|
2014 |
|
2015 |
|
2014 |
|
|
£ |
|
£ |
|
£ |
|
£ |
|
| Provision for site
reinstatement |
(50,000) |
|
(42,000) |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
The provision for site reinstatement covers the estimated costs
of reinstatement at the Parys Mountain site of the work done and
changes made by the group up to the date of the accounts. These
costs would be payable on completion of mining activities (which is
estimated to be more than 20 years’ after mining commences) or on
earlier abandonment of the site. There are significant
uncertainties inherent in the assumptions made in estimating the
amount of this provision, which include judgements of changes to
the legal and regulatory framework, magnitude of possible
contamination and the timing, extent and costs of required
restoration and rehabilitation activity. The provision has been
increased by £8,000 during the year.
21 Share capital
|
Ordinary shares of
1p |
Deferred shares of
4p |
Total |
|
| Issued and fully
paid |
Nominal
value £ |
Number |
Nominal
value £ |
Number |
Nominal
value £ |
|
|
|
|
|
|
|
|
| At 31 March 2013, 2014
and 31 March 2015 |
1,606,081 |
160,608,051 |
5,510,833 |
137,770,835 |
7,116,914 |
|
|
|
|
|
|
|
|
The deferred shares are non-voting, have no entitlement to
dividends and have negligible rights to return of capital on a
winding up.
22 Equity-settled employee
benefits
2004 Unapproved share option plan
This group plan provides for a grant price equal to or above the
average quoted market price of the ordinary shares for the three
trading days prior to the date of grant. All options granted to
date have carried a performance criterion, namely that the
company's share price performance from the date of grant must
exceed that of the companies in the top quartile of the FTSE 100
index. The vesting period for any options granted since 2004 has
been one year. If the options remain unexercised after a period of
10 years from the date of grant, they expire. Options are forfeited
if the employee leaves employment with the group before the options
vest.
|
|
2015 |
|
|
2014 |
|
|
Options |
Weighted average exercise price in pence |
|
Options |
Weighted average exercise price in pence |
|
| Outstanding at
beginning of period |
11,550,000 |
10.90 |
|
11,550,000 |
10.90 |
|
| Granted during
the period |
- |
- |
|
- |
- |
|
| Forfeited during
the period |
- |
- |
|
- |
- |
|
| Exercised during
the period |
- |
- |
|
- |
- |
|
| Expired during
the period |
5,500,000 |
4.13 |
|
- |
- |
|
| Outstanding at
the end of the period |
6,050,000 |
17.06 |
|
11,550,000 |
10.90 |
|
| Exercisable at
the end of the period |
6,050,000 |
17.06 |
|
11,550,000 |
10.90 |
|
|
|
|
|
|
|
|
The plan has now closed and no options were granted or forfeited
in the year. Options over 5,500,000 shares expired during the year.
The options outstanding at 12H31 March 2015 had a weighted average
exercise price of 17.06 pence
(2014 – 10.90 pence), and a
weighted average remaining contractual life of 2 years (2014 – 2
years). As all options had vested by 31
March 2010, the group recognised no expenses in respect of
equity-settled employee remuneration in respect of the years ended
31 March 2014 and 2015.
2014 Unapproved share option plan
This group plan, approved on 30 September
2014, has very similar terms and conditions to the 2004
plan. No option grants have yet been made under this plan.
A summary of options granted and outstanding, all of which are
over ordinary shares of 1 pence, is
as follows:
|
Scheme |
Number |
Nominal value £ |
Exercise price |
Exercisable from |
Exercisable until |
|
|
|
|
|
|
| 2004
Unapproved |
1,550,000 |
15,500 |
10.625p |
15
January 2007 |
14
January 2016 |
| 2004
Unapproved |
3,800,000 |
38,000 |
21.90p |
26
November 2008 |
26
November 2017 |
| 2004
Unapproved |
700,000 |
7,000 |
5.00p |
27 March
2010 |
27 March
2019 |
|
|
|
|
|
|
| Total |
6,050,000 |
60,500 |
|
|
|
23 Results attributable to
Anglesey Mining plc
The loss after taxation in the parent company amounted to
£313,039 (2014 loss £475,676). The directors have taken
advantage of the exemptions available under section 408 of the
Companies Act 2006 and not presented an income statement for the
company alone.
24 Financial instruments
Capital risk management
There have been no changes during the year in the group’s
capital risk management policy.
The group manages its capital to ensure that entities in the
group will be able to continue as going concerns while optimising
the debt and equity balance. The capital structure of the group
consists of debt, which includes the borrowings disclosed in note
19, the cash and cash equivalents and equity comprising issued
capital, reserves and retained earnings.
The group does not enter into derivative or hedging transactions
and it is the group's policy that no trading in financial
instruments be undertaken. The main risks arising from the group's
financial instruments are currency risk and interest rate risk. The
board reviews and agrees policies for managing each of these risks
and these are summarised below.
Interest rate risk
The amounts advanced under the Juno loans are at a fixed rate of
interest of 10% per annum and as a result the group is not exposed
to interest rate fluctuations. Interest received on cash balances
is not material to the group’s operations or results.
The company (Anglesey Mining plc) is exposed to minimal interest
rate risks.
Liquidity risk
The group has ensured continuity of funding through a mixture of
issues of shares and the working capital agreement with Juno
Limited.
Trade creditors are payable on normal credit terms which are
usually 30 days. The loans due to Juno and Angmag carry a notice
period of 367 days. Juno, in keeping with its practice since
drawdown commenced more than 10 years ago, has indicated that it
has no current intention of demanding repayment. No such notice had
been received by 16 July 2015 in
respect of either of the loans and they are classified as having a
maturity date between one and two years from the period end.
Currency risk
The functional currency of the group and company is pounds
sterling. The loan from Juno Limited is denominated in pounds
sterling. As a result, the group has no currency exposure in
respect of this loan. Currency risk in respect of the investment in
LIM is no longer significant.
In respect of the investment in Grangesberg in Sweden if the rate of exchange between the
Swedish Krona and sterling were to weaken against sterling by 10%
there would be a loss to the group of £8,300 and if it were to move
in favour of sterling by a similar amount there would be a gain of
£10,100. Regarding liabilities denominated in Krona if the rate of
exchange between the Swedish Krona and sterling were to weaken
against sterling by 10% there would be a gain to the group of
£20,600 and if it were to move in favour of sterling by a similar
amount there would be a loss of £25,200.
In respect of the group’s Canadian dollar holding, if the
rate of exchange between the Canadian dollar and sterling were to
weaken against sterling by 10% there would be a loss to the group
of £1,800 and if it were to move in favour of sterling by a similar
amount there would be a gain of £2,200.
Potential exchange variations in respect of other foreign
currencies are not material.
Credit risk
The directors consider that the entity has limited exposure to
credit risk as the entity has immaterial receivable balances at the
year-end on which a third party may default on its contractual
obligations. The carrying amount of the group’s financial assets
represents its maximum exposure to credit risk. Cash is deposited
with BBB or better rated banks.
|
Group |
Available for sale assets |
Loans & receivables |
|
31 March 2015 |
31 March 2014 |
31 March 2015 |
31 March 2014 |
|
£ |
£ |
£ |
£ |
| Financial
assets |
|
|
|
|
| Investments |
1 |
1,257,985 |
- |
- |
| Deposit |
- |
- |
122,806 |
122,596 |
| Other
debtors |
- |
- |
30,977 |
17,017 |
Cash and
cash
equivalents |
- |
- |
96,873 |
289,097 |
|
- |
- |
|
|
|
1 |
1,257,985 |
250,656 |
428,710 |
|
|
|
|
|
|
31 March 2015 |
31 March 2014 |
|
|
|
£ |
£ |
|
|
| Financial
liabilities |
|
|
|
|
| Trade
creditors |
(71,538) |
(34,863) |
|
|
| Other
creditors |
(100,019) |
- |
|
|
| Loans |
(2,882,502) |
(2,418,873) |
|
|
|
|
|
|
|
|
(3,054,059) |
(2,453,736) |
|
|
|
|
|
|
|
|
Company |
|
|
|
|
|
Loans & receivables |
Financial liabilities |
|
31 March 2015 |
31 March 2014 |
31 March 2015 |
31 March 2014 |
|
£ |
£ |
£ |
£ |
| Financial
assets |
|
|
|
|
| Other
debtors |
13,945 |
13,793 |
- |
- |
Cash and
cash
equivalents |
72,088 |
267,045 |
- |
- |
|
|
|
|
|
| Financial
liabilities |
|
|
|
|
| Trade
creditors |
- |
- |
(102,660) |
(28,224) |
| Loan |
- |
- |
(2,659,916) |
(2,418,873) |
|
|
|
|
|
|
86,033 |
280,838 |
(2,762,576) |
(2,447,097) |
|
|
|
|
|
25 Related party
transactions
Transactions between Anglesey Mining plc and its subsidiaries
are summarised in note 13.
Juno Limited
Juno Limited (Juno) which is registered in Bermuda holds 36.1% of the company’s issued
ordinary share capital. The group has the following agreements with
Juno: (a) a controlling shareholder agreement dated September 1996 and (b) a consolidated working
capital agreement of 12 June 2002.
Interest payable to Juno is shown in note 7 and the balance due to
Juno is shown in note 19. Except as set out in note 19, there were
no transactions between the group and Juno or its group during the
year. Danesh Varma is a director
and, through his family interests, a significant shareholder of
Juno.
Grangesberg
In May 2014 Bill Hooley and
Danesh Varma were appointed as
directors of Grangesberg Iron AB and of the special purpose vehicle
Eurmag AB; further information concerning these appointments is
included in the strategic report. Danesh
Varma has been associated with the Grangesberg project since
2007 when he became a director of Mikula Mining Limited, a
company subsequently renamed Eurang Limited, previously
involved in the Grangesberg project. He did not take part in the
decision to enter into the Grangesberg project when this was
approved by the board. The group has a liability to Eurmag AB a
subsidiary of Eurang amounting to £226,857 at the year end (2014
– nil) – see note 19.
Key management personnel
All key management personnel are directors and appropriate
disclosure with respect to them is made in the directors’
remuneration report. There are no other contracts of significance
in which any director has or had during the year a material
interest.
26 Mineral holdings
Parys
(a) Most of the mineral resources delineated to date are under
the western portion of Parys Mountain, the freehold and minerals of
which are owned by the group. A royalty of 6% of net profits after
deduction of capital allowances, as defined for tax purposes, from
production of freehold minerals is payable. The mining rights over
and under this area, and the leasehold area described in (b) below,
are held in the Parys Mountain Mines Limited subsidiary.
(b) Under a lease from Lord Anglesey dated December 2006, the subsidiary Parys Mountain Land
Limited holds the eastern part of Parys Mountain, formerly known as
the Mona Mine. An annual certain rent of £10,350 is payable for the
year beginning 23 March 2015; the
base part of this rent increases to £20,000 when extraction of
minerals at Parys Mountain commences; this rental is index-linked.
A royalty of 1.8% of net smelter returns from mineral sales is also
payable. The lease may be terminated at 12 months’ notice and
otherwise expires in 2070.
(c) Under a mining lease from the Crown dated December 1991
there is an annual lease payment of £5,000. A royalty of 4% of
gross sales of gold and silver from the lease area is also payable.
The lease may be terminated at 12 months’ notice and otherwise
expires in 2020.
Lease payments
All the group’s leases may be terminated with 12 months’ notice.
If they are not so terminated, the minimum payments due in respect
of the leases and royalty agreement are analysed as follows: within
the year commencing 1 April 2015 -
£16,131; between 1 April 2016 and
31 March 2021 - £85,635. Thereafter
the payments will continue at proportionate annual rates, in some
cases with increases for inflation, so long as the leases are
retained or extended.
27 Material non cash
transactions
There were no material non-cash transactions in the year.
28 Commitments
Other than commitments under leases (note 26) there is no
capital expenditure authorised or contracted which is not provided
for in these accounts (2014 - nil).
29 Contingent liabilities
There are no contingent liabilities (2014 - nil).
30 Events after the period
end
On 2 April 2015 LIM instituted
proceedings in the Ontario Superior Court of Justice for a
financial restructuring by means of a plan of compromise or
arrangement under the Canadian Companies' Creditors Arrangement Act
in order to facilitate a restructuring and refinancing of its
business operations.
Otherwise there are no events after the period end to
report.
Anglesey Mining
plc
Parys Mountain, Amlwch, Anglesey, LL68 9RE
Phone 01407 831275
mail@angleseymining.co.uk
London office
Painters’ Hall
9 Little Trinity Lane, London,
EC4V 2AD
Phone 020 7653 9881
Registered office
Tower Bridge House,
St. Katharine’s Way,
London,
E1W 1DD
www.angleseymining.co.uk
Company registered number 1849957
- end -