TIDMALBA
RNS Number : 7443F
Alba Mineral Resources PLC
01 August 2016
ALBA MINERAL RESOURCES PLC
HALF-YEARLY REPORT
CHAIRMAN'S STATEMENT
The Board of Alba Mineral Resources plc (the "Company" or "Alba"
or collectively with its Subsidiary Companies, the "Group") is
pleased to report the Company's interim results for the six months
ended 31 May 2016. 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, gold, uranium and base metals. Alba holds interests in
the UK oil & gas exploration sector, plus hard rock exploration
assets in Greenland (Graphite and Gold), Ireland (Base Metals and
Gold) 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.
RESULTS FOR THE PERIOD
The Group made a loss attributable to equity holders of the
parent for the period, after taxation, of GBP198,803. The basic and
diluted loss per share was 0.03 pence.
REVIEW OF ACTIVITIES
Corporate
On 26 February 2016, the Company announced that it had raised
GBP525,000 (before expenses) in an oversubscribed placing, through
the issue of 131,250,000 new ordinary shares at a price of 0.4
pence per ordinary share.
On 16 March 2016, the Company announced the appointment of Mr.
Manual Lamboley to the Board as a Non-Executive Director. Mr. Ben
Harber of Shakespeare Martineau was appointed as Company
Secretary.
Horse Hill (UK)
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 4 January 2016 the Company announced that it had been
notified by HHDL that the Oil and Gas Authority ("OGA") had granted
consent for an extended flow test over three separate zones in the
Horse Hill-1 oil discovery well and, as such, 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 1,688 barrels of oil per day.
Amitsoq (Greenland)
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 near Nanortalik in southern Greenland.
The interpreted results were 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).
-
On 26 May 2016 the Company announced that it had elected to earn
into the Amitsoq project and had agreed a variation to the terms of
its earn in, such that Alba will earn an initial 49 per cent
interest in the Project through the issue of GBP100,000 of Alba
shares to Artemis (calculated at a 20 trading day volume-weighted
average price) and by funding a minimum of a further DKK 1,476,740
(approximately GBP146,000) of exploration costs on the Project by
31 December 2016.
Limerick Basin Project - Ireland
The exploration licence in the Limerick Basin is highly
prospective for zinc, lead gold and silver and is only 10 km away
from and part of the same target unit as the Pallas Green zinc
discovery. On 28 April 2016 an application to renew this licence
was made. Following the grant of the renewal (see "Post Period
End", below), 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.
El Mreiti Project - Mauritania
An application has been submitted to the Mauritanian Authorities
to take out a new licence over a reduced area within the original
licence 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 the new licence. An emphasis of matter has been included in the
auditor's report on this point which can be found in the annual
report for the year ended 30 November 2015.
Other Development Projects
Alba continues to review and discuss other project or investment
opportunities, which have been brought to us by the Board,
management, advisers or other contacts that may have
value-enhancing potential.
Post Period End
Horse Hill
On 5 July 2016 the Company announced that the OGA had granted a
licence conversion to new model terms for Horse Hill PEDL137 and
PEDL246. At the election of the Operator, HHDL, the licences will
adopt 2016 14th Round licence terms permitting the Horse Hill
licences to continue without further relinquishment. A Retention
Area ("RA") covering the entire 55 square mile licence area and an
outline work programme has been agreed with the OGA. The RA will
continue throughout the agreed work programme period currently due
to expire on June 30, 2018 for PEDL137 and June 30, 2017 for
PEDL246. The Horse Hill licences forward work plan includes
long-term production testing of three Kimmeridge Limestone zones
plus the overlying Portland, two contingent appraisal/development
wells and 3D seismic.
On 19 July 2016 the Company announced that a new petrophysical
analysis by Nutech, incorporating the findings of the successful
Horse Hill-1 ("HH-1") flow test, demonstrates a threefold increase
in calculated total oil in place (OIP) per square mile at the HH-1
well within the Upper Portland pay zone. As reported in May 2015, a
total Horse Hill Portland P50 OIP of 21 Million Barrels ("MMbbl")
was calculated utilising Nutech's petrophysical analyses. Nutech's
May 2015 evaluation assigned a Portland OIP value of 7.7 MMbbl per
square mile at the HH-1 well. Nutech's current evaluation upgrades
the Portland OIP at HH-1 to 22.9 MMbbl per square mile, a 200%
increase. As previously stated by the Company, the calculated OIP
per square mile should not be construed as recoverable resources,
contingent or prospective resources or reserves.
In its announcement on 19 July 2016, the Company also gave an
indication of the future plans for the development of the Horse
Hill onshore oil field which involve new permitting applications
and additional commercial flow testing. The applications will seek
permission to conduct a programme consisting of the production flow
testing of three Kimmeridge Limestone zones plus the overlying
Portland over a total flow period of up to 360 days, plus two
further appraisal/development wells and the acquisition of 3D
seismic data. Engineering studies to examine the range of possible
flow rates from a planned horizontal sidetrack well are ongoing.
Data to further calibrate these studies will be acquired during the
further planned extended flow tests.
Ireland
On 26 July 2016, Alba announced that it has received
confirmation from the Irish Department of Communications, Energy
& Natural Resources (Exploration and Mining Division) that the
Company's prospecting licence in County Limerick, Ireland (Area No.
3824) has been renewed for a further two years until 26 May 2018,
for Base Metals, Gold,Silver and Barytes.
Outlook
The positive developments in relation to the Horse Hill project
over the past several months - most notably the very successful
flow test results completed in the first quarter of 2016 - have
provided further justification for Alba's decision to invest in the
project and to increase its interest successively from an initial 5
per cent to its current 15 per cent interest in HHDL.
Aside from Horse Hill, the Board intends to carry out work
programmes in the remainder of 2016 in both Greenland and Ireland.
In addition, we continue actively to consider other projects and
investment opportunities which may bolster the Company's portfolio
of assets and provide further value and interest for our
shareholders.
George Frangeskides
1 August 2016
Executive Chairman
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
For further information please visit the Company's website,
www.albamineralresources.com, or contact:
Alba Mineral Resources plc George Frangeskides, Chairman Tel: +44 (0) 20 7264 4366
Mike Nott, CEO
Cairn Financial Advisers LLP (Nominated Advisers) James Caithie/Liam Murray Tel: +44 (0) 20 7148 7900
UNAUDITED CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 31 MAY 2016
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
31 May 31 May 30 Nov
2016 2015 2015
Revenue - - -
Cost of sales - - -
Gross loss - - -
--------------------------- ---------- ---------- ----------
Other administrative
expenses (200,118) (232,594) (292,705)
Exceptional items - - -
--------------------------- ---------- ---------- ----------
Administrative expenses (200,118) (232,594) (292,705)
---------- ---------- ----------
Operating (loss)/profit (200,118) (232,594) (292,705)
Finance costs - - -
---------- ---------- ----------
(Loss)/profit before
tax (200,118) (232,594) (292,705)
---------- ---------- ----------
Taxation - - -
---------- ---------- ----------
(Loss)/profit for the
year (200,118) (232,594) (292,705)
---------- ---------- ----------
Attributable to:
Equity holders of the
parent (198,803) (232,118) (291,563)
Non-controlling interests (1,315) (476) (1,142)
---------- ---------- ----------
(200,118) (232,594) (292,705)
---------- ---------- ----------
Loss per ordinary share
Basic and diluted (0.03) (0.04) (0.04)
pence pence pence
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MAY 2016
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
31 May 31 May 30 Nov
2016 2015 2015
Non-current assets
Intangible fixed assets 668,330 613,787 662,874
Investments 2,114,222 786,500 1,838,222
------------ ------------ ------------
Total non-current assets 2,782,552 1,400,287 2,501,096
------------ ------------ ------------
Current assets
Trade and other receivables 108,962 11,541 96,942
Cash and cash equivalents 336,050 255,042 288,494
------------ ------------ ------------
Total current assets 445,012 266,583 385,436
------------ ------------ ------------
Current liabilities
Trade and other payables (121,503) (88,920) (80,000)
Financial liabilities (254,074) (254,074) (254,073)
------------ ------------ ------------
Total current liabilities (375,577) (342,994) (334,073)
------------ ------------ ------------
Net assets 2,851,987 1,323,876 2,552,459
------------ ------------ ------------
Capital and reserves
Called up share capital 2,124,421 1,558,178 1,993,171
Share premium account 2,953,786 2,046,624 2,586,286
Warrant reserve 446,291 129,851 446,291
Retained losses (3,082,659) (2,824,411) (2,883,856)
Merger reserve 200,000 200,000 200,000
Foreign currency reserve 184,867 186,370 183,969
------------ ------------ ------------
Equity attributable to
equity holders of the
parent 2,826,706 1,296,612 2,525,861
Non-controlling interests 25,281 27,264 26,598
------------ ------------ ------------
Total equity 2,851,987 1,323,876 2,552,459
------------ ------------ ------------
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 31 MAY 2016
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
31 May 31 May 30 Nov
2016 2015 2015
Cash flows from operating
activities
Operating loss (200,118) (232,594) (292,705)
Non cash settlement of fees - 90,000 -
for professional services
Foreign exchange revaluation
adjustment 896 1,984 (5,204)
Decrease/ increase in
creditors 41,503 38,566 (13,599)
(Increase)/ decrease
in debtors (12,019) 4,968 (88,190)
---------- ---------- ----------
Net cash used in operating
activities (169,738) (97,076) (399,698)
---------- ---------- ----------
Cash flows from investing
activities
Payments for deferred
exploration expenditure (5,456) (7,309) (51,609)
Investments (petroleum
exploration) (276,000) (421,500) (882,690)
---------- ---------- ----------
Net cash used in investing
activities (281,456) (428,809) (934,299)
---------- ---------- ----------
Cash flows from financing
activities
Net proceeds from issue
of shares and warrants 525,000 750,251 1,654,315
Proceeds from borrowings (26,250) - (62,500)
---------- ---------- ----------
Net cash generated from
financing activities 498,750 750,251 1,591,815
---------- ---------- ----------
Net increase in cash
and cash equivalents 47,556 224,366 257,818
Cash and cash equivalents
at beginning of period 288,494 30,676 30,676
---------- ---------- ----------
Cash and cash equivalents
at end of year 336,050 255,042 288,494
---------- ---------- ----------
NOTES TO THE HALF-YEARLY FINANCIAL INFORMATION
1. Basis of preparation
The Group consolidates the financial statements of the Company
and its subsidiary undertakings.
The financial information has been prepared under the historical
cost convention in accordance with International Financial
Reporting Standards ("IFRS"), International Accountant Standards
("IAS") and IFRS Interpretations Committee ("IFRIC")
interpretations as adopted by the European Union. The financial
information set out in this half-yearly report does not constitute
statutory accounts as defined in Section 434 of the Companies Act
2006. The same accounting policies, presentation and methods of
computation are followed in this interim condensed consolidated
report as were applied in the Group's annual financial statements
for the year ended 30 November 2015. The auditor's report on those
financial statements was unqualified and did not contain any
statements under section 498(2) or section 498(3) of the Companies
Act 2006. The auditor's report for the year ended 30 November 2015
did include emphasis of matter paragraphs relating to the
uncertainty as to whether the Group can raise sufficient funds to
continue to develop the Group's exploration assets.
2. Taxation
No charge for corporation tax for the period has been made due
to the expected tax losses available.
3. Loss per share
Basic loss per share is calculated by dividing the loss
attributable to ordinary shareholders of GBP198,803 (May 2015:
GBP232,118; November 2015: GBP291,564) by the weighted average
number of shares of 742,971,557 (May 2015: 542,338,783; November
2015: 692,258,595) in issue during the period. The diluted loss per
share calculation is identical to that used for basic loss per
share as the exercise of warrants would have the effect of reducing
the loss per ordinary share and therefore is not dilutive under the
terms of Financial Reporting Standard 22 "Earnings Per Share".
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR AKCDPPBKDCOB
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