TIDMALO
RNS Number : 2664L
Alecto Minerals PLC
30 September 2016
Alecto Minerals plc / EPIC: ALO / Market: AIM / Sector:
Exploration & Development
30 September 2016
Alecto Minerals plc ('Alecto' or the 'Company', and with its
subsidiaries, the 'Group')
Interim Results
Alecto Minerals plc (AIM: ALO), the Africa-focused gold and base
metal exploration and development company, is pleased to announce
its unaudited interim results for the period ended 30 June
2016.
Highlights:
-- Progress made towards becoming an African focused gold producer
o FS delivered at Matala Gold Project in Zambia; additional gold
ounces identified; and Design, Build and Operate ('DBO') contract
secured
-- Joint venture agreements entered into on three Malian gold
exploration projects providing exposure to value upside at low
cost:
o Randgold has a 65% interest in Kossanto West and is funding
all costs up to and including the completion of a pre-feasibility
study
o JV with Kola Gold solely funding all costs to complete a
scoping study to earn an interest of 65% of Karan Gold Project in
Mali
o Letter of intent ('LOI') with Ashanti Gold Corp. for Ashanti
to earn an interest in the Company's Kossanto East Gold Project
Alecto Chairman Gerald Chapman commented:
"We have delivered on a number of our stated objectives for our
African gold portfolio during the period. Our activities at Matala
in Zambia have both created value and validated our production
strategy. We are close to securing vendor finance to cover the very
low capex required to deliver gold production and with an NPV of
$35.2 million and an Internal Rate of Return of 66%, it is clear
that this project has robust economics. For a company of our size,
we believe this asset provides us with an excellent opportunity to
generate cash flow and prove our production capabilities. We are
also evaluating larger projects with a view to building Alecto to
become a profitable African metals producer. We are also pleased to
have secured value accretive paths for the rest of our portfolio
via joint ventures. I believe that Alecto is now poised for
significant growth in the next 12 months.
I would like to touch upon the often emotive issue of equity
issue and dilution. As the Company's biggest shareholder and
Chairman of the board I am ever mindful of the fact that issuing
new equity dilutes existing shareholders. Indeed, the entire
management team are shareholders and each one understands the
issues. I am, however, in the privileged position to be able to see
how active our team is and the essential work that they continue to
do on the ground.
Throughout the period we have maintained very tight austerity
measures and focused on ensuring that monies raised through equity
have maximum impact on the ground. These activities have required
us to fundraise during the period but I believe that we have done
so judiciously, and as a shareholder I am entirely comfortable this
was the correct thing to do."
CEO's Statement
Commercialisation of our African gold portfolio is always at the
forefront of our mind and I am pleased to report that we have made
very positive steps towards this during H1 2016. We entered the
year with a firm focus on production, following our acquisition of
the Matala and Dunrobin gold mines in Zambia, and on forming joint
venture partnerships that allow us to retain value in our African
gold exploration portfolio for little or no cost. We promptly
positioned Alecto as a developer and delivered a number of
important milestones to realise our vision.
As a group of engineers, our management team's expertise lends
itself to generating profitable scenarios for advanced projects.
This perspective has formed the backbone of our strategy and the
Matala and Dunrobin acquisition is testament to this. Although the
mines came to us with a 25 year renewable mining licence covering
32km(2) , an associated environmental permit, and a 760,000 oz Au
JORC Code compliant resource estimate in the Measured, Indicated
and Inferred categories at an average grade of 2.3g/t Au, it was
clear from a scoping study completed on Matala and a feasibility
study at Dunrobin, that a new production approach was required to
ensure the economics of the project are as robust as possible.
Initial work in Zambia included the completion of an internal
scoping study which turned the existing scenario of delivering
production from Dunrobin before Matala on its head. Our scoping
study suggested that by producing first from an initial three-year
open pit operation at Matala, we could potentially generate strong
cash flows, which could then support further development of the
project whilst also realising nearer term value for shareholders.
This acquisition encapsulates our strategy and we continue to
assess additional African projects where this approach can add
value, both for the project and shareholders alike.
Reflecting our determination to move quickly towards becoming a
gold producer, we entered the period with a newly signed agreement
with PenMin Ltd ('PenMin'), a South African based consultancy
group, which has extensive knowledge of Matala and Dunrobin, to
assist in the project's development. PenMin was tasked with
delivering a Feasibility Study ('FS') on Matala; preparing the
Design, Build and Operate ('DBO') contract for the full project;
preparing the mining contract to secure a mining contractor;
seeking to secure vendor financing for the supply of the processing
plant; and ensuring that all the relevant permits and approvals are
in place to commence production.
During the FS process we were pleased to announce the discovery
of an additional 75,000 tonnes of measured (non-code compliant)
mineral resources located in recently validated historic dumps and
tailings adjacent to the Matala deposit. This significant quantity
of contained metal sitting at surface will not incur direct mining
costs and is therefore expected to provide potential for early, low
cost feedstock for the Company's future mining operations. This
positive news set the scene for the publication of a FS for Matala,
which demonstrates the robust economics and low capex associated
with constructing a 400,000 tonnes per annum ('tpa') oxide and
transitional open pit operation with a mine life of approximately 4
years 8 months at $1,300/oz Au. The fundamentals are as
follows:
- Estimated capital cost for plant and infrastructure of US$14.4 million
- Project NPV of US$35.2 million at an 8% discount rate
- Unlevered project IRR of 66%
PenMin delivered on their mandate and our project was further
de-risked by our entry into a proposed DBO contract agreement with
Yantai Xinhai Machinery Co. Ltd ('Xinhai') and PenMin, regarding
the proposed construction and financing of mining operations at
Matala. The support of Xinhai demonstrates the commerciality of our
project and the contract has been agreed under International
Federation of Consulting Engineers ('FIDIC') 'Gold Book', 2008,
standards for the process plant and associated infrastructure.
FIDIC contracts have been developed over 50 years as the
international standard for the consulting industry and are
recognised and used globally in many jurisdictions, on all types of
projects (www.fidic.org).
Xinhai agreed to arrange vendor financing for the DBO contract
having confirmed that it is satisfied with the technical and
financial outcomes of the FS. PenMin has been appointed Employer's
Representative under a FIDIC 'White Book' Client / Consultant
Agreement. During the operational phase, Xinhai and PenMin will
jointly manage the plant's operations, the control of which will
then be transferred to Alecto on conclusion of the term of the
contract.
In summary, the period under review saw us add significant value
to these prospective development projects in a short space of time.
We proved that we have the potential to deliver meaningful cash
flow for a company of our size, at low cost, and highlighted the
potential upside available across the Matala and Dunrobin areas via
exploration and underground mining. Our vendor finance process is
moving forward and we look forward to providing updates on this at
the appropriate time. When producing, this asset will represent
Zambia's first single-commodity gold mine, and political and social
support for the project is excellent.
Since initiating our production strategy we have stated our
desire to maximise value from the rest of our prospective African
gold portfolio at low/no cost to Alecto by securing joint venture
partnerships with quality companies. We have successfully delivered
on this model during the reporting period. In February 2016, we
announced a JV with Randgold Resources Limited (LSE:RRS)
('Randgold') for Kossanto West. This project comprises the Kobokoto
Est and Koussikoto exploration permits, which cover 137 km(2) in
western Mali, some 40km north-west of Randgold Resources 10Moz Au
Loulo/Gounkoto complex and approximately 50km north-east of their
3m oz Au Massawa project in Senegal. Kossanto West was part of the
larger Kossanto Gold Project and was split from Kossanto East for
geological reasons. It is interpreted that a major structural event
occurred within the permit boundaries of Kossanto West. The
regionally significant Main Transcurrent Shear Zone ('MTZ') appears
to change its strike direction from NNE to NNW, and exploration
work completed by Alecto identified numerous high-grade gold
targets coincident with this change of the MTZ.
Under the terms of this agreement Randgold holds a 65% interest
in Kossanto West with Alecto holding the remaining 35%. Randgold is
funding all costs up to and including the completion of a
pre-feasibility study ('PFS'). Following the publication of the
PFS, all costs will be split between the JV parties in accordance
with their participating interest.
In its Q2 2016 update Randgold reported that it had completed
regional mapping and lithosampling across the JV area, confirmed
NW-SE lithologies and identified several major geological domains.
Randgold also confirmed that it had validated various gold-in-soil
anomalies originally identified by Alecto's team, and that there
were numerous gold showings and artisanal workings across the
project. We are eagerly anticipating the return of Randgold's field
teams once the rains subside in western Mali.
We also entered into a JV with Kola Gold via its subsidiary,
Cora Gold, for the Karan Gold Project in Mali. Kola is solely
funding all exploration and development costs up to and including
the completion of a scoping study to earn an interest of 65%. It
has the potential to earn another 15% by solely funding exploration
expenditure up to completion of a Bankable Feasibility Study. The
Cora Gold team has commenced an initial work programme at Karan,
which includes geochemical and termite mound sampling, mapping of
recently discovered gold occurrences and the compilation of a
substantial historical exploration database that includes
approximately 12,000 metres of reverse circulation ('RC') and
rotary air blast ('RAB') drilling, trenching and pitting.
We believe that Cora Gold is a natural JV partner for Alecto,
owning adjoining permits to the south of the Karan permit. With
this in mind its management and technical staff have significant
experience in finding and developing successful gold projects, both
in Mali and across the wider region, and we look forward to
receiving the outcome of their work.
Rounding off the Company's joint venture activities, post period
end we were delighted to announce that we had signed a non-binding
letter of intent ('LOI') with Ashanti Gold Corp. ('Ashanti'), a
Toronto Venture Exchange listed public company (TSX: AGZ.V), for
Ashanti to earn an interest in the Company's Kossanto East Gold
Project ('Kossanto East') in western Mali. Kossanto East has a
JORC-Code compliant mineral resource estimate of 247,000 oz Au.
Given that the Gourbassi deposits are open along strike and we have
received excellent initial results from exploration targets such as
Berola (15 metres @ 1.18 g/t Au from surface), we are confident
that this proposed partnership with Ashanti will enable us to
realise the full potential of Kossanto East so that together we
will be able to build a larger mining play at this very exciting
project area.
The value potential of these JV activities should not be
underestimated. For each of the projects under JV in Mali it would
have required additional investment by Alecto of an estimated US$5m
in exploration expenditure to reach FS level, and these funds would
have necessarily have had to be raised through the issue of equity.
By having this work funded by our JV partners, and with their
extensive regional expertise and proven track records, it is clear
that any future discoveries will have a direct benefit to the
Company, and we will be in a strong position to participate as per
the individual joint venture agreements.
Funding
As previously discussed, in May 2016 we announced that Xinhai
had signed a Letter of Intent to assist us to obtain Vendor
financing from China. We have made steady progress in this regard
but have not been able to complete the financing to our internal
target of the end of September 2016. With the knowledge that in the
current climate nothing can be guaranteed, we have taken the
prudent approach to look at alternative sources of project funding;
whilst our major focus remains on completing the vendor financing
with Xinhai, we have advanced discussions with a number of funding
parties that are interested in working with us to get Matala into
production. The Board remains confident that funding will be
obtained and that Matala will be commissioned during 2017.
In May 2016 we were pleased to announce that we had raised
GBP665,000 (before expenses) by way of a placing of 831,250,000 new
ordinary shares of 0.01 pence each in the capital of the Company at
a price of 0.08 pence per Placing Share, with new and existing
shareholders. In the same month CEO Mark Jones subscribed for
12,500,000 new ordinary shares of 0.01p each at a price of 0.08
pence per share, raising a further GBP10,000.
In addition we have announced today, a further GBP600,000
(before expenses) has been raised by way of a placing of
800,000,000 new ordinary shares of 0.01 pence each ('Placing
Share') in the capital of the Company at a price of 0.075 pence per
Placing Share (the 'Placing'). The funds raised strengthen our
balance sheet which will be to our advantage as we negotiate
project funding. The new capital will allow us to initiate
necessary work programmes at the mine site including: ground
clearance for the process plant, security fencing, infrastructure
and civils work, resettling affected families and establishment of
new water bore facilities for our own needs and those of the
immediate communities. These activities are essential to the
overall project and delaying them while we wait for the project
finance would simply delay final project delivery.
In terms of the remaining portfolio corporate costs, the Company
is taking a cautious approach and material further development will
require further funding from time to time. Furthermore, we are
focussing on our costs and the board will be implementing measures
to defer a significant proportion of staff and directors
remuneration until the completion of project funding.
Financial Review
The loss before taxation for the Group for the six month period
ended 30 June 2016 amounted to GBP287,155 (30 June 2015:
GBP264,320). The Group's cash position as at 30 June 2016 was
GBP567,644 (30 June 2015: GBP326,730).
The net proceeds of the Placing provided additional working
capital as we actively conduct due diligence on potential
acquisition opportunities. Cost saving initiatives have continued
and we will endeavour to maintain a tight control over costs going
forward.
Outlook
I believe that Alecto is proof that hard work pays off. A year
ago the Company was an African gold explorer and like many mining
juniors beleaguered by difficult markets. Today, following
assessment of a range of assets, the Company has ownership of a
small but perfectly formed gold production opportunity in a stable
part of Africa, which has the potential to deliver cash flow in the
relative short term. It is amenable to a rapid and robust
development campaign and with financing for the low-capex Matala
Gold Mine in Zambia nearly secured, our hands on management team is
close to demonstrating the commercial viability of this asset. With
the success of our strategy beginning to bear fruit, or more aptly
gold, we look forward to applying our fast-paced development model
to projects that offer similar near term value potential, so that
we may further enhance value for shareholders. Additionally, the
Company has maintained exposure at no cost to prospective and
exciting exploration acreage in Mali via Joint Ventures with the
likes of Randgold, Ashanti Gold, and Kola Gold, providing lots of
opportunity for news flow going forward.
I would like to thank shareholders and advisers for their
support during the period and hope that they share in our
excitement for the future as we focus on achieving production in
Africa as quickly as practicable.
Mark Jones
Chief Executive
30 September 2016
For further information, please visit www.alectominerals.com or
contact:
Alecto Minerals plc Tel: +44 (0)20 7499 5881
Mark Jones
Strand Hanson Limited Tel: +44 (0)20 7409 3494
Andrew Emmott
Matthew Chandler
James Dance
Beaufort Securities Limited Tel: +44 (0)20 7382 8300
Jon Belliss
St Brides Partners Ltd Tel: +44 (0)20 7236 1177
Elisabeth Cowell
Charlotte Heap
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
6 months
6 months to 30
to 30 June
June 2016 2015
Unaudited Unaudited
Notes GBP GBP
---------------------------------------- ------- ------------ ------------
Continuing operations
Revenue 105,369 44,663
Administration expenses (407,980) (312,588)
Other gains 15,238 3,602
Operating loss (287,373) (264,323)
---------------------------------------- ------- ------------ ------------
Finance income 218 3
Other losses - -
---------------------------------------- ------- ------------ ------------
Loss before taxation (287,155) (264,320)
---------------------------------------- ------- ------------ ------------
Income tax expense - -
---------------------------------------- ------- ------------ ------------
Loss for the period from continuing
operations attributable to equity
owners of the parent (287,155) (264,320)
---------------------------------------- ------- ------------ ------------
Other comprehensive income
Items that may be reclassified
to profit or loss
Currency translation differences 449,930 (586,908)
Change in value of available-for-sale
financial assets 14,850 (6,500)
Total comprehensive income for
the period attributable to equity
owners of the parent (177,625) (857,728)
---------------------------------------- ------- ------------ ------------
Loss per share from continuing
operations attributable to the
equity owners of the parent
---------------------------------------- ------- ------------ ------------
Basic and diluted (pence per
share) 6 (0.016) (0.026)
---------------------------------------- ------- ------------ ------------
CONDENSED CONSOLIDATED BALANCE SHEET
30 June 31 December
2016 2015
Unaudited Audited
Notes GBP GBP
------------------------------------ ------- ------------- -------------
Non-Current Assets
Property, plant and equipment 93,502 112,905
Intangible assets 5 17,893,884 17,081,716
Trade and other receivables - 21,307
Restricted assets 20,530 -
Available-for-sale financial
assets 22,500 7,650
------------------------------------- ------- ------------- -------------
18,030,416 17,223,578
------------------------------------ ------- ------------- -------------
Current Assets
Trade and other receivables 317,378 286,461
Cash and cash equivalents 567,644 530,003
------------------------------------- ------- ------------- -------------
885,022 816,464
------------------------------------ ------- ------------- -------------
Total Assets 18,915,438 18,040,042
------------------------------------- ------- ------------- -------------
Current Liabilities
Trade and other payables 657,035 634,994
Borrowings - 528,576
657,035 1,163,570
------------------------------------ ------- ------------- -------------
Non-Current Liabilities
Other payables 181,775 -
Deferred taxation 3,564,063 3,564,063
------------------------------------- ------- ------------- -------------
3,745,838 3,564,063
------------------------------------ ------- ------------- -------------
Total Liabilities 4,402,873 4,727,633
------------------------------------- ------- ------------- -------------
Net Assets 14,512,565 13,312,409
------------------------------------- ------- ------------- -------------
Capital and Reserves Attributable
to
Equity Holders of the Company
Share capital 4,544,021 4,412,421
Share premium 14,295,546 13,446,703
Share option reserve 137,290 106,080
Translation reserve 11,516 (42,350)
Available-for-sale financial
asset reserve (27,500) (449,292)
Retained losses (4,448,308) (4,161,153)
------------------------------------- ------- ------------- -------------
Total Equity 14,512,565 13,312,409
------------------------------------- ------- ------------- -------------
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS'
EQUITY
Attributable to Owners of the Parent
----------------------------------------------------------------------------------
Available
-for-sale Share
Share Share investment option Translation Retained Total
capital Premium reserve reserve reserve losses equity
GBP GBP GBP GBP GBP GBP GBP
--------------------- -----------
As at 1 January
2015 4,186,796 11,147,543 (35,600) 100,365 (345,936) (7,464,486) 7,588,682
Loss for the period - - - - - (264,320) (264,320)
Other comprehensive
income
Currency
translation
differences - - - - (586,908) - (586,908)
Change in value of
available-for-sale
financial assets - - (6,500) - - - (6,500)
--------------------- ----------- ------------ ------------ --------- ------------- ------------- -----------
Total comprehensive
income for the
period - - (6,500) - (586,908) (264,320) (857,728)
--------------------- ----------- ------------ ------------ --------- ------------- ------------- -----------
Issue of ordinary
shares 50,000 850,000 - - - - 900,000
Issue costs - (65,000) - - - - (65,000)
Total transactions
with owners,
recognised
directly in equity 50,000 785,000 - - - - 835,000
--------------------- ----------- ------------ ------------ --------- ------------- ------------- -----------
As at 30 June 2015 4,236,796 11,932,543 (42,100) 100,365 (932,844) (7,728,806) 7,565,954
--------------------- ----------- ------------ ------------ --------- ------------- ------------- -----------
Attributable to Owners of the Parent
-----------------------------------------------------------------------------------
Available
-for-sale Share
Share Share investment option Translation Retained Total
capital Premium reserve reserve reserve losses equity
GBP GBP GBP GBP GBP GBP GBP
--------------------- -----------
As at 1 January
2016 4,412,421 13,446,703 (42,350) 106,080 (449,292) (4,161,153) 13,312,409
Loss for the period - - - - - (287,155) (287,155)
Other comprehensive
income
Currency
translation
differences - - - - 460,808 - 460,808
Change in value of
available-for-sale
financial assets - - 14,850 - - - 14,850
--------------------- ----------- ------------ ------------ --------- ------------- ------------- ------------
Total comprehensive
income for the
period - - 14,850 - 460,808 (287,155) 188,503
--------------------- ----------- ------------ ------------ --------- ------------- ------------- ------------
Issue of ordinary
shares 131,600 921,201 - - - - 1,052,801
Issue costs - (72,358) - - - - (72,358)
Issue of new
options - - - 31,210 - - 31,210
Total transactions
with owners,
recognised
directly in equity 131,600 848,843 - 31,210 - - 1,011,653
--------------------- ----------- ------------ ------------ --------- ------------- ------------- ------------
As at 30 June 2016 4,544,021 14,295,546 (27,500) 137,290 11,516 (4,448,308) 14,512,565
--------------------- ----------- ------------ ------------ --------- ------------- ------------- ------------
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
30 June 30 June
2016 2015
Unaudited Unaudited
GBP GBP
------------------------------------- ------------ ------------
Cash flows from operating
activities
Loss before taxation (287,155) (264,320)
Adjustments for:
Finance income - -
Depreciation 48,233 37,944
Share based payments 10,000 -
Loss on disposal of property,
plant & equipment - -
Share option expense 25,352 -
Foreign exchange differences 82,211 (13,168)
Increase/(decrease) in trade
and other receivables 7,421 72,150
(Decrease)/increase in trade
and other payables (16,298) (48,771)
Net cash used in operations (130,236) (216,165)
--------------------------------------- ------------ ------------
Cash flows from investing
activities
Interest received - 3
Proceeds from sale of property,
plant & equipment (419) -
Purchase of intangible assets (461,982) (158,973)
Net cash used in investing
activities (462,401) (158,970)
--------------------------------------- ------------ ------------
Cash flows from financing
activities
Proceeds received from issue
of shares 696,000 650,000
Cost of share issue (66,500) (65,000)
Net cash from financing activities 629,500 585,000
--------------------------------------- ------------ ------------
Net (decrease)/increase in
cash and cash equivalents 36,863 209,865
Cash and cash equivalents
at beginning of period 530,003 114,258
Exchange gains/(losses) on
cash and cash equivalents 778 2,607
--------------------------------------- ------------ ------------
Cash and cash equivalents
at end of period 567,644 326,730
--------------------------------------- ------------ ------------
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1. General Information
The principal activity of Alecto Minerals plc (the 'Company')
and its subsidiaries (together the 'Group') is the exploration for,
and development of, gold and base metals. The Company's shares are
quoted on the AIM market of the London Stock Exchange plc. The
Company is incorporated and domiciled in the UK.
The address of the Company's registered office is 47 Charles
Street, London, W1J 5EL.
2. Basis of Preparation
The condensed consolidated interim financial statements have
been prepared in accordance with the requirements of the AIM Rules
for Companies. As permitted, the Company has chosen not to adopt
IAS 34 "Interim Financial Statements" in preparing this interim
financial information. The condensed interim financial statements
should be read in conjunction with the annual financial statements
for the year ended 31 December 2015, which have been prepared in
accordance with International Financial Reporting Standards (IFRS)
as adopted by the European Union.
The interim financial information set out above does not
constitute statutory accounts within the meaning of the Companies
Act 2006. The interim financial statements have been prepared on a
going concern basis in accordance with the recognition and
measurement criteria of International Financial Reporting Standards
(IFRS) as adopted by the European Union. Statutory financial
statements for the year ended 31 December 2015 were approved by the
Board of Directors on 6 June 2016 and subsequently delivered to the
Registrar of Companies. The independent auditor's report on those
financial statements was unqualified which included an emphasis of
matter.
The 2016 interim financial statements of the Group have not been
audited or reviewed.
Going concern
The interim financial statements have been prepared on a going
concern basis. Although the Group's assets are not generating
revenues, an operating loss has been reported for the reporting
period and an operating loss is expected to be incurred in the 12
months subsequent to the date of these financial statements, the
Directors believe, having considered all available information
including cash flows prepared by management, that the Group having
raised GBP600,000 (gross) in September 2016 has sufficient funds to
meet its expected committed and contractual expenditure through to
March 2017, and are confident that they will be able to raise
additional funding as necessary.
Based on the Board's assessment that the cash flow forecasts can
be achieved and that necessary funds will be raised when required,
the Directors have a reasonable expectation that the Group has
adequate resources to continue in operational existence for the
foreseeable future. Thus, they continue to adopt the going concern
basis of accounting in preparing the interim financial statements
for the period ended 30 June 2016.
Risks and uncertainties
The Board continuously assesses and monitors the key risks
facing the business. The key risks that could affect the Group's
medium term performance and the factors that mitigate those risks
have not substantially changed from those set out in the Group's
2015 Annual Report and Financial Statements, a copy of which is
available on the Group's website at: www.alectominerals.com. The
key financial risks are liquidity risk, foreign exchange risk,
credit risk, price risk and interest rate risk.
Critical accounting estimates and judgements
The preparation of condensed interim financial statements in
conformity with IFRS requires management to make estimates and
assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at
the end of the reporting period. It also requires management to
exercise its judgement in the process of applying the Group's
Accounting Policies. The areas involving a higher degree of
judgement or complexity, or areas where assumptions and estimates
are significant to the condensed interim financial statements, are
disclosed in Note 4 of the Group's 2015 Annual Report and Financial
Statements.
3. Accounting Policies
Except as described below, the same accounting policies,
presentation and methods of computation have been followed in these
condensed interim financial statements as were applied in the
preparation of the Group's annual financial statements for the year
ended 31 December 2015, except for the impact of the adoption of
the Standards and interpretations described below.
3.1 Changes in accounting policies and disclosures
(a) New and amended standards mandatory for the first time for
the financial period beginning 1 January 2016
A number of new standards and amendments to standards and
interpretations are effective for the financial period beginning on
or after 1 January 2016 and have been applied in preparing these
Financial Statements.
Amendments to IAS 1 Disclosure Initiative
Amends IAS 1 Presentation of Financial Statements to address
perceived impediments to preparers exercising their judgement in
presenting their financial reports by making the following
changes:
- Clarification that information should not be obscured by
aggregating or by providing immaterial information, materiality
considerations apply to the all parts of the financial statements,
and even when a standard requires a specific disclosure,
materiality considerations do apply;
- Clarification that the list of line items to be presented in
these statements can be disaggregated and aggregated as relevant
and additional guidance on subtotals in these statements and
clarification that an entity's share of OCI of equity-accounted
associates and joint ventures should be presented in aggregate as
single line items based on whether or not it will subsequently be
reclassified to profit or loss;
- Additional examples of possible ways of ordering the notes to
clarify that understandability and comparability should be
considered when determining the order of the notes and to
demonstrate that the notes need not be presented in the order so
far listed in paragraph 114 of IAS 1.
Amendments to IAS 16 and IAS 38 Clarification of Acceptable
Methods of Depreciation and Amortisation
Amends IAS 16 Property, Plant and Equipment and IAS 38
Intangible Assets to:
- Clarify that a depreciation method that is based on revenue
that is generated by an activity that includes the use of an asset
is not appropriate for property, plant and equipment
- Introduce a rebuttable presumption that an amortisation method
that is based on the revenue generated by an activity that includes
the use of an intangible asset is inappropriate, which can only be
overcome in limited circumstances where the intangible asset is
expressed as a measure of revenue, or when it can be demonstrated
that revenue and the consumption of the economic benefits of the
intangible asset are highly correlated
- Add guidance that expected future reductions in the selling
price of an item that was produced using an asset could indicate
the expectation of technological or commercial obsolescence of the
asset, which, in turn, might reflect a reduction of the future
economic benefits embodied in the asset.
Amendments to IAS 27 Equity Method in Separate Financial
Statements
Amends IAS 27 Separate Financial Statements to permit
investments in subsidiaries, joint ventures and associates to be
optionally accounted for using the equity method in separate
financial statements.
Amendments to IFRS 11 Accounting for Acquisitions of Interest in
Joint Operations
Amends IFRS 11 Joint Arrangements to require an acquirer of an
interest in a joint operation in which the activity constitutes a
business (as defined in IFRS 3 Business Combinations) to:
- Apply all of the business combinations accounting principles
in IFRS 3 and other IFRSs, except for those principles that
conflict with the guidance in IFRS 11
- Disclose the information required by IFRS 3 and other IFRSs
for business combinations.
The amendments apply both to the initial acquisition of an
interest in joint operation, and the acquisition of an additional
interest in a joint operation (in the latter case, previously held
interests are not remeasured).
Annual Improvements 2012-2014 Cycle
Makes amendments to the following standards:
- IFRS 5 - Adds specific guidance in IFRS 5 for cases in which
an entity reclassifies an asset from held for sale to held for
distribution or vice versa and cases in which held-for-distribution
accounting is discontinued
- IFRS 7 - Additional guidance to clarify whether a servicing
contract is continuing involvement in a transferred asset, and
clarification on offsetting disclosures in condensed interim
financial statements
- IAS 9 - Clarify that the high quality corporate bonds used in
estimating the discount rate for post-employment benefits should be
denominated in the same currency as the benefits to be paid
- IAS 34 - Clarify the meaning of 'elsewhere in the interim
report' and require a cross-reference
There are no other new standards and amendments to standards and
interpretations effective for the financial year beginning on or
after 1 January 2015 that are material to the Group and Company and
therefore not applied in preparing these financial statements.
(b) New standards, amendments and Interpretations in issue but
not yet effective or not yet endorsed and not early adopted
The standards and interpretations that are issued, but not yet
effective, up to the date of issuance of the Financial Statements
are listed below. The Company and Group intend to adopt these
standards, if applicable, when they become effective.
Effective
Standard Impact on initial application date
---------------------- -------------------------------- -------------
IAS 7 (Amendments) Disclosure Initiative *1 January
2017
IAS 12 (Amendments) Recognition of Deferred Tax *1 January
2017
IFRS 2 (Amendments) Classification and Measurement *1 January
of Share-based payments 2018
IFRS 9 Financial Instruments *1 January
2018
IFRS 10 (Amendments) Contribution of Assets between ^*1 January
an Investor and its Associate 2016
or Joint Venture
IFRS 12 (Amendments) Investment Entities: Applying *1 January
the Consolidation Exception 2016
IFRS 15 Revenue from Contracts with *1 January
Customers 2018
IFRS 16 Leases *1 January
2019
(*) Subject to EU endorsement
^ Effective date deferred indefinitely
The Group is evaluating the impact of the new and amended
standards above. The Directors believe that these new and amended
standards are not expected to have a material impact on the Group's
results or shareholders' funds.
4. Dividends
No dividend has been declared or paid by the Company during the
six months ended 30 June 2016 (2015: nil).
5. Intangible Assets
Intangible assets comprise exploration and evaluation costs and
goodwill. Exploration and evaluation costs comprise acquired and
internally generated assets.
Exploration
& evaluation
Goodwill assets Total
Cost and Net Book Value GBP GBP GBP
-------------------------- ---------- --------------- ------------
Balance as at 1 January
2016 404,213 16,677,503 17,081,716
Additions - 461,982 461,982
Exchange rate movements - 350,186 350,186
As at 30 June 2016 404,213 17,489,671 17,893,884
-------------------------- ---------- --------------- ------------
6. Loss per Share
The calculation of the total basic loss per share of 0.016 pence
(2015: 0.026 pence) is based on the loss attributable to equity
owners of the parent company of GBP287,155 (2015: GBP264,320) and
on the weighted average number of Ordinary Shares in issue of
4,459,814,850 (2015: 1,001,754,411) during the period.
No diluted earnings per share is presented as the effect of the
exercise of share options would be to decrease the loss per
share.
Details of share options and other share based payments that
could potentially dilute earnings per share in future periods are
disclosed in the notes to the Group's Annual Report and Financial
Statements for the year ended 31 December 2015.
7. Commitments
All commitments remain as stated in the Group's Annual Financial
Statements for the year ended 31 December 2015.
8. Approval and availability of interim financial statements
The condensed interim financial statements were approved by the
Board of Directors on 29 September 2016.
A copy of the interim financial statements will be available on
the Company's website www.alectominerals.com.
**ENDS**
Notes to editors:
Alecto Minerals plc is an African focussed, gold and base metal
exploration and development company quoted on AIM with exploration
projects in Mali, Burkina Faso and Mauritania and, a development
project with near-term gold production in Zambia.
In Zambia, the historical Matala and Dunrobin gold mines have,
in aggregate, a 760,000 oz Au JORC Code compliant resource estimate
in the Measured, Indicated and Inferred categories at an average
grade of 2.3g/t Au. The Company is focused on bringing Matala into
low-cost production in the near to mid-term.
In Mali, the Kossanto East project has a current independent
inferred JORC Code compliant resource estimate of 6.72Mt grading at
1.14g/t Au for an aggregate of 247,000 oz Au with a cut-off grade
of 0.5g/t Au at Kossanto East. The project is located in the centre
of the Kenieba inlier in western Mali. The Kenieba inlier is a
block of ancient greenstones and granites hosting many significant
gold deposits in Senegal and Mali, making it one of the most
important gold regions in Africa.
Alecto also owns the Kerboule Project, located in the highly
prospective Birrimian-age Djibo gold belt in northern Burkina Faso,
as well as the wholly owned Wad Amour IOCG Project in Mauritania
which is at an exploration stage.
Accordingly, the Company has a strong, diversified project
portfolio with planned near-term production and exciting
exploration upside potential.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LLFLDALIAFIR
(END) Dow Jones Newswires
September 30, 2016 02:02 ET (06:02 GMT)
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