TIDMALBA
RNS Number : 1357W
Alba Mineral Resources PLC
25 April 2016
25 April 2016
Alba Mineral Resources plc
("Alba" or "the Company")
Final Results for the year ended 30 November 2015
CHAIRMAN'S STATEMENT
The Board of Alba Mineral Resources plc (the "Company" or
"Alba", and collectively with its Subsidiary Companies, the
"Group") is pleased to report the results for the year ended 30
November 2015. They incorporate the results of its subsidiary
companies Aurum Mineral Resources Limited ("AMR"), Mauritania
Ventures Limited ("MVL") and Alba Mineral Resources Sweden AB
("Alba Sweden") (collectively the "Subsidiary Companies").
INTRODUCTION
Alba is an explorer with a commodity focus on oil & gas,
graphite, uranium and base metals. Alba holds interests in the UK
oil & gas exploration sector, plus hard rock exploration assets
in Greenland (Graphite), Ireland (Base Metals) and Mauritania
(Uranium).
The Group's overall technical and corporate strategy is to
identify and acquire natural resource projects it believes to have
good potential and to advance them expediently. This will be
achieved by controlled design and execution of a cost-effective
generative process utilising data acquisition, GIS data analysis
and exploration programme planning, led by our internal technical
team and where appropriate, through the support of external
technical consultants.
On 16 March 2016 Chade van Hatch resigned as the Company's Chief
Financial Officer and Company Secretary. I would like to take the
opportunity to thank Chade for her contribution to the Alba Board
and wish her well in her future career and also to welcome Manuel
Lamboley to the Board as a Non-Executive Director.
REVIEW OF ACTIVITIES
Horse Hill
The Horse Hill-1 well ("HH-1") is located within onshore
exploration licence PEDL 137, on the northern side of the Weald
Basin near Gatwick Airport. Alba owns a 15% direct interest in
Horse Hill Developments Limited ("HHDL"). HHDL is a special purpose
company that owns a 65% participating interest and operatorship of
Licence PEDL137 and the adjacent Licence PEDL246 in the UK Weald
Basin. The remaining 35% participating interests in the PEDL137 and
PEDL246 licences are held by US-based Magellan Petroleum
Corporation.
On 8 April 2015, the Company completed the acquisition of the 5%
shareholding in HHDL held by Regency Mines Plc ("Regency") for a
total cash consideration of GBP300,000. Additionally, on completion
the Company paid the outstanding cash calls issued to Regency by
HHDL, being a total of GBP60,000. During the period to 8 April
2015, a further cash call payment of GBP60,000 to HHDL was made by
the Company to HHDL pursuant to the terms of the HHDL shareholders'
agreement.
On 9 April 2015, US-based Nutech estimated that the HH-1 well
indicates a total OIP of 158 mmbo per square mile. The amount
excluded the previously reported Upper Portland Sandstone oil
discovery. Nutech's report stated that this OIP lies within a 653
feet aggregate net pay section, primarily within three argillaceous
(shale-rich) limestones and interbedded mudstones of the Kimmeridge
Clay Formation, and also mudstones of the Oxford and Lias sections.
Nutech calculated that approximately 72% of the OIP, or 114 mmbo,
lies within the shallower Upper Jurassic Kimmeridge interbedded
limestone and mudstone sequence.
An independent study of the Portland Sandstone reservoir using
petrophysics was conducted for HHDL by Xodus Group, an
international energy consultancy based in the UK, and the results
were published on 11 May 2015. The results showed that the Upper
Portland Sandstone conventional reservoir contains a "Best
Estimate" (P50) gross STOIIP of 21.0 million barrels ("mmbbls")
entirely within PEDL137 and encompasses both the HH-1 well and the
historic CF-1 well. This had previously been calculated at 12.8
mmbbls in December 2014.
On 13 May 2015, the Company announced that it had been informed
by HHDL that the exploration stage of the PEDL137 licence had been
extended by the Oil & Gas Authority ("OGA", formerly the
Department of Energy & Climate Change) to 30 September 2016.
The exploration stage of the PEDL246 licence expires on 30 June
2019.
On 5 June 2015 Schlumberger (one of the leading suppliers of
technology, integrated project management and information solutions
to customers working in the global oil and gas industry), acting in
an advisory capacity to HHDL, independently evaluated the
unconventional oil potential of HH-1 and estimated approximately
271 mmbbls per square mile for the Jurassic section. A total of 255
mmbbls gross OIP was estimated to lie within the low-porosity
limestone and mudstone plays of the Kimmeridge, Oxford Clay and
Lias (Upper Portland Sandstone discovery).
Nutech provided an additional independent report of the
estimated OIIP contained within the Horse Hill licences (PEDL 137
and PEDL 246) on 18 June 2015. The new study calculated a best
estimate (P50) OIIP of 9,245 mmbbls within the Kimmeridge, Oxford
and Lias formations, with a calculated best estimate total
Kimmeridge OIP of 5,230 mmbbls. The calculated OIIP figures
estimated by Nutech do not include the OIIP for the Portland
Sandstones. It is stressed that these values should not be
construed as contingent resources or reserves.
On 26 August 2015, Schlumberger provided HHDL with an
independent report of the estimated oil in place contained within
the HHDL Licence Area. The calculated gross OIIP at Horse Hill was
10,993 mmbbls, and is composed of 8,262 mmbbls within tight
limestones and shales of the Kimmeridge Clay Formation, and 2,731
mmbbls associated with the shales of the Oxford Clay and Lias
Formations.
On 23 October 2015 the Company announced the completion of the
acquisition from Angus Energy Limited ("Angus") of:
-- 5 per cent of the issued share capital of HHDL, being 50
fully paid ordinary shares in HHDL (the "Sale Shares"). Alba has
accordingly increased its interest in HHDL from 10% to 15%; and
-- an option to farm into 5 per cent of Production Licence 235
("PEDL 235"), which comprises the producing onshore Brockham Oil
Field ("Brockham") (the "Brockham Option"). The Brockham Option
shall be on a "two for one promote" basis, such that if Alba elects
to exercise the Brockham Option, it must fund 10 per cent of the
cost of the next well (from spudding to first oil) in order to earn
its 5 per cent interest.
The Company settled the consideration payable by Alba for the
Sale Shares and the Brockham Option as follows:
-- by the issue of 137,729,178 new ordinary shares in Alba;
-- by the payment of GBP365,000 in cash; and
-- by the issue of 45,909,726 warrants to subscribe for new
ordinary shares in Alba at a price of 0.5p per share. These
warrants are exercisable on or before the date falling 18 months
from Completion.
Greenland Graphite
On 6 October 2015 the Company announced the signing of an
agreement with Artemis Resources Ltd ("Artemis"), an Australian
Securities Exchange quoted company (ASX:ARV), which grants Alba an
option to earn up to 70% of a graphite project near Nanortalik in
southern Greenland ("Agreement"). The licence area comprises the
historic Amitsoq graphite mine and is prospective not only for
graphite but also for gold, copper, nickel and platinum group
elements.
Alba is in the process of re-negotiating its earn-in terms with
Artemis under the agreement announced on 6 October 2015, and a
further announcement on this will be made in due course.
On 30 November 2015 the Company announced that a field visit had
been completed at the Amitsoq graphite project. Samples taken from
historic workings at the Amitsoq mine were subjected to graphitic
carbon analysis and a petrographic determination of flake size by
the British Geological Survey ("BGS") at their laboratory in
Keyworth, near Nottingham.
Several of the samples were dispatched to an independent assay
laboratory to determine the presence of deleterious elements and to
quantify the presence of sulphides.
Quotations are currently being reviewed for a high-resolution
modern airborne electromagnetic (EM) and magnetic survey to
identify graphitic horizons and sulphide bodies associated with
ultramafic intrusions. It is anticipated that this work will
commence in the summer of 2016. Follow-up work, if warranted, will
consist of diamond drilling to provide a resource estimation.
Ireland
The exploration licence in the Limerick Basin is highly
prospective for zinc, lead and silver and is only 10 km away from
and part of the same target unit as the Pallas Green zinc
discovery. The Board intends to make an application to renew this
licence. It is intended that when the renewal is granted, the
Company will initially undertake a geophysical survey, either
Gravity or Induced Polarisation or both to help better understand
the structural elements of the licence area that may be controlling
the known sulphide mineralisation that is present within the
licence boundaries.
Mauritania
The Group is in the process of submitting a new application to
the Mauritanian Authorities to take out a new permit over a reduced
area within the original permit area, which includes the centre of
the previously discovered and announced high-tenor uranium
anomalies. Alba and its joint venture partner will then consider
their options with regards to funding the next stage of
exploration.
The continued development of the Mauritania exploration
activities is dependent on the grant of a new licence. An emphasis
of matter has been included in the auditor's report on this
point.
Other Development Projects
Alba continues to review and discuss other opportunities, which
have been brought to us by contacts that may have value-enhancing
potential.
Corporate
Our financial activities in the year have been primarily focused
on securing additional funding for the Group.
On 16 February 2015 the Group raised GBP270,000 (before
expenses) through the subscription of 108,000,000 new ordinary
shares at a subscription price of 0.25 pence per share.
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On 16 March 2015 the Group raised a further GBP500,000 (before
expenses) through the subscription of 200,000,000 new ordinary
shares at a price of 0.25 pence per ordinary share.
On 1 May 2015, the Company announced that it issued 18,000,000
new ordinary shares at a price of 0.50 pence per ordinary share in
settlement of fees for professional services.
On 12 June 2015 the Group raised a further GBP355,000 (before
expenses) through the subscription of 71,000,000 new ordinary
shares at a price of 0.50 pence per ordinary share.
On 19 October 2015 the Group raised a further GBP385,000 (before
expenses) through the subscription of 154,000,000 new ordinary
shares at a price of 0.25 pence per ordinary share. The Company
also granted to the subscribers in the Placing warrants to
subscribe for further ordinary shares on the basis of one ordinary
share for every three new ordinary shares subscribed, resulting in
the issue of warrants to subscribe for a total of 51,333,331
Ordinary Shares to the subscribers. The new warrants are
exercisable at a price of 0.50 pence per share within 18 months
following the date of grant.
On 5 November 2015 the Group raised a further GBP160,000 (before
expenses) through the issue of 64,000,000 new ordinary shares at a
price of 0.25 pence per ordinary share. The Company also granted to
subscribers in the Placing warrants to subscribe for further
ordinary shares on the basis of one ordinary share for every three
new ordinary shares subscribed, resulting in the issue to the
subscribers of warrants to subscribe for a total of 21,333,333
Ordinary Shares. The new warrants are exercisable at a price of 0.5
pence per share within 18 months following the date of grant.
EVENTS AFTER THE REPORTING PERIOD
A general meeting was held on 16 December 2015 seeking
shareholder approval to grant additional authorities to issue new
ordinary shares, at which all resolutions were unanimously
passed.
On 4 January 2016 the Company announced that it had been
notified by Horse Hill Developments Limited that the Oil and Gas
Authority had granted consent for an extended flow test over three
separate zones in the Horse Hill-1 oil discovery well. On 4 January
2016 Alba announced that all necessary permissions had been granted
in order for the Horse Hill-1 well to be flow tested. On 8 February
2016 Alba announced that flow tests had commenced. The final flow
test results were announced by Alba on 21 March 2016. The final
total aggregate stable dry oil flow rate from two Kimmeridge
limestones plus the overlying Portland sandstone was measured at
1688 bopd.
On 4 February 2016 the Company announced that it had completed
an iron oxide (FeO) alteration remote sensing (satellite) study on
the Amitsoq graphite project (the "Project") near Nanortalik in
southern Greenland. The interpreted results are highly encouraging
and provide numerous target areas for follow-up ground work and
geophysics, highlighted as follows:
-- Numerous and continuous graphitic horizons suggested along
strike and proximal to the Amitsoq graphite mine.
-- FeO anomalies are coincident with known graphite occurrences
at the former Amitsoq graphite mine.
-- Two zones contain multiple lenses of interpreted bedded
graphite along strike 2.5 km and 5.8 km to the northeast of the
Amitsoq mine.
-- Additional FeO anomalies are interpreted to be favourable
targets for platinum group metals, orogenic lode gold and intrusion
related copper-zinc mineralization.
-- Anomalies identified with geology similar to economic gold
mineralization at the nearby Nalunaq gold mine (circa 340,000
ounces of gold produced to date).
OUTLOOK
During the past financial year, the Alba Board, determined to
increase the Company's exposure to the highly prospective Horse
Hill oil & gas project, acquired two further stakes in the
project, giving it a 15 per cent interest in HHDL, and making it
HHDL's second largest shareholder. In addition, we identified and
acquired an option over what we believe to be a highly prospective
graphite project in Greenland. These acquisitions, and Alba's
funding of its commitments both at Horse Hill and its other
projects, were achieved by a series of successful recent capital
raisings completed by the Company during the year, despite what has
been a consistently challenging investment market. This is a
testament to the dedication and resourcefulness of the management
team at Alba. In the coming year, your Board will continue to seek
out further opportunities to build on the solid foundations
established during the past financial year.
George Frangeskides
Chairman
Glossary of technical terms:
argillaceous a limestone containing a significant
limestone proportion of clay minerals
------------------------ -------------------------------------------
clastic rocks composed of broken pieces
of older rocks
------------------------ -------------------------------------------
core a cylindrical sample of rock, obtained
during drilling of wells and removed
for inspection at surface
------------------------ -------------------------------------------
discovery a discovery is a petroleum accumulation
for which one or several exploratory
wells have established through
testing, sampling and/or logging
the existence of a significant
quantity of potentially moveable
hydrocarbons
------------------------ -------------------------------------------
electric logs tools used within the wellbore
to measure the rock and fluid properties
of surrounding rock formations
------------------------ -------------------------------------------
fault block a very large subsurface block of
rock, created by tectonic and localised
stresses
------------------------ -------------------------------------------
limestone a carbonate sedimentary rock predominantly
composed of calcite of organic,
chemical or detrital origin. Minor
amounts of dolomite, chert and
clay are common in limestones.
Chalk is a form of fine-grained
limestone
------------------------ -------------------------------------------
Geographic a system designed to capture, store,
Information manipulate, analyse, manage, and
System or Geographical present all types of spatial or
Information geographical data
System (GIS)
------------------------ -------------------------------------------
MICP mercury injection capillary pressure,
a measure of rock porosity and
permeability, from rock cores or
cuttings, and a calibration of
porosity logs
------------------------ -------------------------------------------
mudstone an extremely fine-grained sedimentary
rock consisting of a mixture of
clay and silt-sized particles
------------------------ -------------------------------------------
oil initially the quantity of oil or petroleum
in place ("OIIP") that is estimated to exist originally
or oil in place in naturally occurring accumulations
("OIP") before any extraction or production
------------------------ -------------------------------------------
petrophysical the study of physical and chemical
evaluation rock properties and their interactions
with fluids; studies typically
use well logs, well cores and seismic
data
------------------------ -------------------------------------------
recoverable those quantities of petroleum estimated,
resources as of a given date, to be potentially
recoverable from known accumulations
------------------------ -------------------------------------------
reservoir a subsurface rock formation containing
an individual natural accumulation
of moveable petroleum that is confined
by impermeable rock/formations
------------------------ -------------------------------------------
sandstone a clastic sedimentary rock whose
grains are predominantly sand-sized.
The term is commonly used to imply
consolidated sand or a rock made
of predominantly quartz sand
------------------------ -------------------------------------------
seismic use of sound waves generated by
controlled explosions to ascertain
the nature of the subsurface geological
structures. 2D seismic records
a cross-section through the subsurface
------------------------ -------------------------------------------
STOIIP stock tank oil initially in place
------------------------ -------------------------------------------
TVDSS true vertical depth below a subsea
datum
------------------------ -------------------------------------------
XRD x-ray diffraction; scattering of
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x-rays by the atoms of a rock or
crystal that gives information
on the structure, composition and
identity of the rock or crystal
------------------------ -------------------------------------------
Enquiries:
Alba Mineral Resources plc
Michael Nott, CEO +44 20 7907 9328
Cairn Financial Advisers LLP
James Caithie / Liam Murray +44 20 7148 7900
Dowgate Capital Stockbrokers Limited
Jason Robertson / Neil Badger +44 1293 517744
Alba Mineral Resources plc
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 30 NOVEMBER 2015
2015 2014
GBP GBP
Revenue - -
Cost of sales - -
------------ ---------
Gross loss - -
----------------------------- ------------ ---------
Administrative expenses (292,705) (235,751)
------------ ---------
Operating loss (292,705) (235,751)
Finance costs - -
Loss before tax (292,705) (235,751)
Taxation - -
Loss for the year (292,705) (235,751)
============ =========
Attributable to:
Equity holders of the parent (291,563) (234,001)
Non-controlling interests (1,142) (1,750)
------------ ---------
(292,705) (235,751)
============ =========
Loss per ordinary share
(0.04) pence (0.07)
Basic and diluted pence
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2015
2015 2014
GBP GBP
Loss after tax (292,705) (235,751)
Foreign exchange movements 5,204 49,688
Total comprehensive loss (287,501) (186,063)
========= =========
Total comprehensive loss attributable to:
Equity holders of the parent (286,359) (184,313)
Non-controlling interests (1,142) (1,750)
(287,501) (186,063)
========= =========
Alba Mineral Resources plc
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
30 NOVEMBER 2015
2015 2014
GBP GBP
Non-current assets
Intangible fixed assets 662,874 611,265
Investments 1,838,222 365,000
Total non-current assets 2,501,096 976,265
----------- -----------
Current assets
Trade and other receivables 96,942 16,509
Cash and cash equivalents 288,494 30,676
----------- -----------
Total current assets 385,436 47,185
----------- -----------
Current liabilities
Trade and other payables 80,000 50,355
Financial liabilities 254,073 254,073
Total current liabilities 334,073 304,428
----------- -----------
Net assets 2,552,459 719,022
=========== ===========
Capital and reserves
Called up share capital 1,993,171 1,232,178
Share premium account 2,586,286 1,532,373
Warrant reserve 446,291 129,851
Retained losses (2,883,856) (2,592,293)
Merger reserve 200,000 200,000
Foreign currency reserve 183,969 189,173
----------- -----------
Equity attributable to equity
holders of the parent 2,525,861 691,282
Non-controlling interests 26,598 27,740
Total equity 2,552,459 719,022
=========== ===========
Alba Mineral Resources plc
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 NOVEMBER 2015
2015 2014
GBP GBP
Cash flows from operating activities
Operating loss (292,705) (235,751)
Foreign exchange revaluation adjustment (5,204) 52,152
Decrease in creditors (13,599) (5,041)
Increase / (decrease) in debtors (88,190) 4,791
Net cash used in operating activities (399,698) (183,849)
--------- ---------
Cash flows from investing activities
Payments for deferred exploration expenditure (51,609) (7,773)
Investments (882,690) (365,000)
Net cash used in investing activities (934,299) (372,773)
--------- ---------
Cash flows from financing activities
Net proceeds from the issue of shares and warrants 1,654,315 601,466
Costs of issue (62,500) (28,866)
Proceeds from borrowings - 20,250
Net cash generated from financing activities 1,591,815 587,082
--------- ---------
Net increase in cash and cash equivalents 257,818 30,460
Cash and cash equivalents at beginning of period 30,676 216
Cash and cash equivalents at end of year 288,494 30,676
========= =========
Non-cash transactions
Significant non cash transactions related to the purchase of
investments of GBP539,532 which was settled by way of the issue of
shares and warrants. There were no significant non-cash
transactions in 2014.
NOTES
1. Basis of preparation
The financial information set out in this announcement does not
comprise the Group's statutory accounts for the year ended 30
November 2015 or 30 November 2014. The financial information has
been extracted from the statutory accounts of the Company for the
year ended 30 November 2015 and 30 November 2014. The auditors
reported on those accounts; their report was unqualified and did
not contain a statement under either Section 498 (2) or Section 498
(3) of the Companies Act 2006. The auditor's report for the year
ended 30 November 2014 did include emphasis of matter paragraphs
relating to uncertainty as to whether (a) the Group can raise
sufficient funds to continue to develop the Group's exploration
assets; (b) the Mauritania permit will be renewed beyond May 2015;
(c) the Limerick licence that expires in May 2016 will be renewed;
and (d) the value of the parent company's investment in its
subsidiaries is supported by exploration activities. The auditor's
report for the year ended 30 November 2015 did include emphasis of
matter paragraphs relating to uncertainty as to whether (a) the
Group can raise sufficient funds to continue to develop the Group's
exploration assets; (b) the Mauritania permit will be renewed
beyond May 2016; (c) the Limerick licence that expires in May 2016
will be renewed; and (d) the value of the parent company's
investment in its subsidiaries is supported by exploration
activities.
2. Going Concern
Further to the fund raising completed after the year end, after
making enquiries, the directors have a reasonable expectation that
the Group has adequate resources to meet its current committed
expenditure and recurring outgoings for the foreseeable future,
although the current level of funding is not sufficient to enable
the Company to significantly develop the Group's exploration
assets. Thus, the directors continue to adopt the going concern
basis of accounting in preparing the financial statements
3. Continuation of exploration activities
The Group is dependent on securing further funds to continue to
develop the Group's exploration assets which have a carrying value
of GBP662,874 and which support the value of the Company's
investment in its subsidiaries, which have a carrying value of
GBP1,445,008. If it is not possible to raise sufficient funds, the
carrying value of the exploration assets of the Group and the
investment of the Company in its subsidiaries are likely to be
impaired.
4. Taxation
No charge for corporation tax for the period has been made due
to the expected tax losses available.
5. Earnings per share
Basic loss per share is calculated by dividing the loss
attributed to ordinary shareholders of GBP291,563 (2014: GBP234,001
loss) by the weighted average number of shares of 692,258,595
(2014: 316,438,563) in issue during the year. The diluted earnings
per share calculation is identical to that used for basic loss per
share as warrants are "out of the money" and not considered
dilutive.
6. Report and accounts
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The statutory accounts for the year ended 30 November 2014 have
been delivered to the Registrar of Companies, whereas those for the
year ended 30 November 2015 will be sent to shareholders of the
Company in due course and will be delivered to the Registrar of
Companies following the Company's Annual General Meeting. The
report and accounts will also be made available on the Company's
website: www.albamineralresources.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR EAKLAADXKEFF
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