TIDMAXM
RNS Number : 4382G
Alexander Mining PLC
30 May 2017
Alexander Mining plc
Audited Results for the Year Ended 31 December 2016
Alexander Mining plc ("Alexander" or the "Company"), the
AIM-listed mining and mineral processing technologies company,
announces its audited results for the year ended 31 December
2016.
Highlights
-- Continued interest from mining companies in leaching technologies
-- Continued success in registration of patents
-- Company well financed and reviewing complementary opportunities in the mining sector
Chairman's Statement
Commercialisation activities
The Company's activities during 2016 were conducted in an
environment of increasing confidence for growth in the global
economy and contemporaneously the fortunes of the mining industry.
Reflecting this, the Company made some satisfactory progress
towards its objective of commercialising its leaching technologies
("Leaching Technologies").
Since the beginning of 2016, mining companies have enjoyed
rising prices for many important base metals and, pleasingly, for
those of main interest to the Company - copper, zinc and cobalt;
prices are up 22%, 45% and 132% respectively over the last 12
months. This bodes well for healthy activity in the sector,
especially amongst those more innovative companies in the mining
industry seeking to embrace, and adopt our Leaching Technologies
with inherent economic, operational and environmental benefits.
Significant progress was announced in August 2016, with the
signing of a licence agreement for Australia with Accudo Metals, a
new Australian company which has been established to exploit
Alexander's proprietary Leaching Technologies. Initial test work
and a full scoping study on the first targeted opportunity, a
copper project, has been completed, with positive results. Accudo
is currently evaluating the scoping study in detail, with a view to
deciding on the next stage of work, which would logically be
starting work on a feasibility study. Accudo is negotiating with
the owners of the copper project on a variety of matters, including
the proposed feasibility study and commercial terms beyond. We look
forward to Accudo advising us on the outcome as and when
appropriate.
Under the licence agreement, Alexander has granted Accudo an
exclusive licence ("Licence") for up to five mining projects (each
a "Project") in Australia to use its Leaching Technologies, subject
to securing commercial terms with the Project owners. In exchange,
Alexander will receive a royalty linked to gross sales value of
product produced using the Leaching Technologies of 3.5%.
In addition to the Royalty, Accudo, subject to certain
conditions, will pay various progress payments for each Project.
Moreover, subject to certain conditions, Accudo has an option to
convert, for a significant payment, the non-exclusive component of
the Licence into an exclusive Licence.
We are delighted to have signed this agreement with Accudo which
is well financed and intent upon rigorously evaluating the use of
Alexander's Leaching Technologies in Australia. In addition to the
initial copper project, we have had in-depth discussions with them
about a range of identified potential projects of interest and we
look forward to developments with optimism.
In Turkey, we remain hopeful that we may benefit from a change
in the ownership of the Sivas copper mineral property ("Sivas") in
the Republic of Turkey and where we have had past interest.
Separately, Alexander has investigated several other
commercialisation opportunities for its Leaching Technologies to
recover copper, cobalt and zinc in various countries and of the
world. In particular, we have had strong interest from companies
active in Africa and also, post the period under review, signed a
marketing agreement with Dr. Jadambaa Temuujin, currently Chief
Research Scientist at the Institute of Chemistry and Chemical
Technology, part of the Mongolian Academy of Sciences, for
Mongolia.
Lithium recovery research and development
Post the period under review, in March 2017, Alexander announced
an exciting new research and development joint venture project
("JV") for the recovery of lithium from hard rock sources. The JV
is between the Company and Dr. Nicholas Welham, Alexander's
Principal Technology Consultant for ammoniacal and hypochlorous
acid leaching.
Alexander will be entitled to be the initial sole funder of the
JV in return for an economic interest of up to 80 per cent in a
worldwide exclusive licence ("Licence") to commercialise the new
technology(ies). The JV will be in stages, with stage 1, proof of
concept, budgeted to cost US$10,000 and expected to take
approximately three to four months once suitable samples have been
obtained. Thereafter, if stage 1 is favourable, Alexander may agree
to fund part or all of the next stages, including a mini pilot
plant, budgeted for an additional US$240,000 and to take 12-18
months.
As an acknowledged expert in lithium and hydrometallurgy,
working with Dr. Welham on this project offers the exciting
potential to develop new lithium processing intellectual property
in a sector of major interest. The JV is complementary to our
existing cobalt recovery technology as cobalt is an essential
component in lithium ion batteries.
With this new development, the company is involved in innovative
processing technology for three of the so-called 'technology metals
of the future' - copper, cobalt and lithium. All of them have an
essential use in electric vehicles' manufacture. Plus, lithium ion
batteries also have huge growth potential for use in the battery
mass electricity storage sector.
MetaLeach(R) registered patent summary
Method Country
AmmLeach(R) family patents
Ammoniacal Leaching Peru, South Africa, African
Regional Industrial Property
Organisation ("ARIPO"),
Australia, Mexico, Morocco,
USA, Democratic Republic
of the Congo, China,
Canada
Extracting Zinc from ARIPO, Australia, Mexico,
Aqueous Ammoniacal Solutions USA
Leaching Cobalt from South Africa, USA
Oxidised Cobalt Ores
Leaching of a Copper-containing Australia
Ore
Leaching Zinc from a Australia, USA
Zinc Ore
Recovering Cobalt from Australia
Cobalt-Containing Ores
Leaching of Copper and USA
Molybdenum
HyperLeach(R) family
patents
Oxidative Leaching of
Molybdenum -
Rhenium Sulfide Ores Australia, Mongolia,
and/or Concentrates USA, Chile
Oxidative Leaching of Australia, Mongolia
Sulfide Ores and/or Concentrates
NB: ARIPO includes: Botswana, Namibia, Zambia
and Zimbabwe.
Intellectual property
Continued success in the granting of important patents occurred
during 2016, encompassing our AmmLeach (R)and HyperLeach (R)
inventions, with more patent applications in the pipeline. The
table above summarises those patents granted to date.
Financial
The Company continued with its policy of keeping administration
costs to a minimum, whilst ensuring the protection of its
intellectual property through patent applications. In May 2016 and
in February 2017, the Company raised, through equity placings of
new ordinary shares to institutional and other investors, gross
amounts of GBP500,000 and GBP750,000 respectively. The net proceeds
of the placings were for general working capital purposes and also
in part in the most recent placing for a potential corporate
opportunity.
New opportunities
As well as actively working on the commercialisation of our
Leaching Technologies, given the mining industry background of the
Company's directors and senior employees, we have recently
investigated a range of potentially complementary corporate
investment opportunities in the mining sector.
Whilst we have not yet been able to advance an opportunity to
the stage for public disclosure we remain active in evaluating
several of interest.
Outlook
I am encouraged by the better conditions for the mining sector
and our prospects for the commercialisation of our Leaching
Technologies. We still firmly believe that the scope for major
operating and capital cost savings for existing and potential mines
using our technology is of significant industry interest. Mining
companies, wherever possible, still need to improve metal
extraction recoveries and reduce operating costs. When coupled with
the inherent positive environmental credentials, we believe our
Leaching Technology is an attractive processing method for many
mining operations with amenable ore when compared to conventional
processes.
The initiative in lithium recovery research and development
offers a complementary area of interest to our existing
intellectual property portfolio.
Finally, I would like to thank the Company's shareholders for
their support and our employees, consultants and directors for
their efforts during the year.
Matt Sutcliffe
Executive Chairman
26 May 2017
For further information, please contact:
Martin Rosser
Chief Executive
Mobile: +44 (0) 7770 865
341
Matt Sutcliffe
Executive Chairman
Mobile: +44 (0) 7887 930
758
Alexander Mining plc
Tel: +44 (0) 20 7078 9566
Email: mail@alexandermining.com
Website: www.alexandermining.com
Northland Capital Partners
Limited
Matthew Johnson / Gerry
Beaney
+44 (0) 20 3861 6625
(Corporate Finance)
John Howes
(Corporate Broking)
Turner Pope Investments
(TPI) Ltd
James Pope / Ben Turner
+44 (0) 20 3621 4120
Consolidated income statement for the year ended 31 December
2016
2016 2015
GBP'000 GBP'000
------------------------------------- -------- --------
Continuing operations
Revenue - 8
Gross profit - 8
Administrative expenses (435) (608)
Research and development
expenses (144) (249)
Operating loss (579) (849)
Finance income - -
Finance cost (4) -
Loss before taxation (583) (849)
Income tax expense - -
------------------------------------- -------- --------
Loss for the year from continuing
operations (583) (849)
Basic and diluted loss per
share (pence):
from continuing operations (0.08)p (0.30)p
All components of profit or loss for the year
are attributable to equity holders of the parent.
Consolidated statement of comprehensive income for the year
ended 31 December 2016
2016 2015
GBP'000 GBP'000
-------------------------------- -------- --------
Loss for the year (583) (849)
Other comprehensive income: 4 -
Total comprehensive loss
for the year attributable
to equity holders of the
parent (579) (849)
-------------------------------- -------- --------
Consolidated balance sheet as at 31 December 2016
2016 2015
GBP'000 GBP'000
------------------------------- --------- ---------
Assets
Property, plant and equipment - -
Total non-current assets - -
------------------------------- --------- ---------
Trade and other receivables 39 41
Cash and cash equivalents 259 165
-------------------------------- --------- ---------
Total current assets 298 206
-------------------------------- --------- ---------
Total assets 298 206
-------------------------------- --------- ---------
Equity attributable to owners
of the parent
Issued share capital 14,404 13,825
Share premium 13,772 13,822
Accumulated losses (28,501) (27,971)
-------------------------------- --------- ---------
Total equity (325) (324)
-------------------------------- --------- ---------
Liabilities
Current liabilities
Trade and other payables 623 530
Total current liabilities 623 530
-------------------------------- --------- ---------
Total liabilities 623 530
-------------------------------- --------- ---------
Total equity and liabilities 298 206
-------------------------------- --------- ---------
Consolidated statement of cash flows for the year ended 31
December 2016
2016 2015
GBP'000 GBP'000
--------------------------------- -------- --------
Cash flows from operating
activities
Operating loss - continuing
operations (579) (849)
Decrease / (Increase) in
trade and other receivables (14) 26
Increase in trade and other
payables 93 92
Increase/(Decrease) in
provisions - (18)
Shares issued in payment
of expenses - 57
Share option & Warrant
charge 49 32
Inter-company recharges - -
--------------------------------- -------- --------
Net cash outflow from operating
activities (451) (660)
----------------------------------- -------- --------
Cash flows from investing
activities
Amounts remitted to subsidiary
companies - -
Interest received - -
Net cash inflow/(outflow)
from investing activities - -
--------------------------------- -------- --------
Cash flows from financing
activities
Proceeds from the issue
of share capital, net of
issue costs 549 709
Proceeds from issue of
share options - -
--------------------------------- -------- --------
Net cash inflow from financing
activities 549 709
----------------------------------- -------- --------
Net increase/(decrease)
in cash and cash equivalents 98 49
Cash and cash equivalents
at beginning of year 165 116
Exchange differences (4) -
--------------------------------- -------- --------
Cash and cash equivalents
at end of year 259 165
----------------------------------- -------- --------
Consolidated statement of changes in equity for the year ended
31 December 2016
Share Share Accumulated Total
capital premium losses equity
GBP'000 GBP'000 GBP'000 GBP'000
At 1 January
2015 13,639 13,298 (27,211) (274)
------------------------- --------- --------- ------------ --------
Accumulated loss
for year - - (849) (849)
Total comprehensive
loss for the
year attributable
to equity holders
of the parent - - (849) (849)
------------------------- --------- --------- ------------ --------
Share option
& Warrant costs - - 89 89
Costs of share
issue - (71) - (71)
Shares issued 186 595 - 781
------------------------- --------- --------- ------------ --------
At 31 December
2015 13,825 13,822 (27,971) (324)
------------------------- --------- --------- ------------ --------
Accumulated loss
for year - - (583) (583)
Translation difference - - 4 4
--------- --------- ------------ --------
Total comprehensive
loss for the
year attributable
to equity holders
of the parent - - (579) (579)
------------------------- --------- --------- ------------ --------
Share option
& Warrant costs - - 49 49
Costs of share
issue - (34) - (34)
Shares issued
including warrant
charge 579 (16) - 563
------------------------- --------- --------- ------------ --------
At 31 December
2016 14,404 13,772 (28,501) (325)
------------------------- --------- --------- ------------ --------
Notes
1. Financial statements
The financial information set out in this announcement does not
constitute statutory accounts within the meaning of Section 434 of
the Companies Act 2006 for the year ended 31 December 2016 or for
the year ended 31 December 2015, but is derived from those
accounts. The financial statements for 2016 will be delivered to
the Registrar of Companies following the Company's Annual General
Meeting. The auditor has issued an unqualified opinion in respect
of the financial statements which does not contain any statements
under the Companies Act 2006, Section 498(2) or Section 498(3). The
auditor has raised an Emphasis of Matter in relation to going
concern and the availability of project finance as follows:
"In forming our opinion, which is not modified, we have
considered the adequacy of the disclosures made in note 2(a) to the
financial statements concerning the Company's recent equity fund
raising and the anticipated requirement for further funding in the
next twelve months. The Directors believe that the Company
currently has a range of corporate development opportunities which
could give rise to significant cash inflows in the next twelve
months.
"However, the outcome of these corporate developments and the
funding arising from them cannot presently be determined. These
conditions, along with the other matters explained in note 2(a) to
the financial statements, indicate the existence of a material
uncertainty which may cast significant doubt about the Company's
and the Groups' ability to continue as a going concern. The
financial statements do not include the adjustments that would
result if the Company and Group was unable to continue as a going
concern."
2. Summary of significant accounting policies
a) Basis of preparation
The financial statements have been prepared in accordance with
International Financial Reporting Standards ("IFRSs") in force at
the reporting date and their interpretations issued by the
International Accounting Standards Board ("IASB") as adopted for
use within the European Union.
The consolidated financial statements incorporate the financial
statements of the Company and entities controlled by the Company
(its subsidiaries) made up to 31 December each year.
Going Concern
In common with many mining, exploration and intellectual
property development companies, the Company has raised finance for
its activities in discrete tranches to finance its activities for
limited periods. As explained more fully in Note 4, Post Balance
Sheet events, on the 8 February 2017 the Company announced that it
had conditionally raised GBP750,000 before expenses by way of an
equity placing and the proceeds have now been received by the
Company. It is anticipated that further funding will be required in
the next twelve months and the Directors believe that the Company
has a range of corporate development opportunities which could give
rise to significant net cash inflows over the next twelve
months.
On this basis, the Directors have concluded that it is
appropriate to draw up the financial statements on the going
concern basis. However, there can be no certainty that the
corporate development opportunities will be secured and give rise
to the further funding in the necessary timescales. This indicates
the existence of a material uncertainty that may cast significant
doubt on the ability of the Company and the group to continue as a
going concern and therefore, that it may be unable to realise its
assets and discharge its liabilities in the normal course of
business. The financial statements do not include the adjustments
that would result if the Company and Group were unable to continue
as a going concern.
b) Research and development expenditure
Research costs are recognised in the income statement as an
expense as incurred. Development costs are recognised in the income
statement as an expense as incurred unless the development project
meets specific criteria for deferral and amortisation. No
development costs have been deferred to date because there is
insufficient information at the balance sheet date to quantify the
expected future economic benefits from the proprietary leaching
technologies.
3. Dividends
The directors do not recommend the payment of a dividend (2015:
nil).
4. Post balance sheet events
On the 01 February 2017, the Company issued 1,769,772 shares for
cash of 0.2p each to raise GBP3,539.55 following the exercise of
bonus warrants issued to existing shareholders of the company at
4.30pm on the 24 May 2016 on the basis of 1 warrant per every 4
qualifying shares held by shareholders.
On the 01 February 2017, the Company issued 10,000,000 shares
for cash of 0.1p each to raise GBP10,000.00 following the exercise
of broker warrants issued to Cornhill Capital in connection with
the 20 May 2016 placing.
On the 15 February 2017, the Company issued 359,000,000 new
shares of 0.1p each for cash at 0.14p each to raise GBP502,600
(gross).
On the 28 February 2017, the Company issued 176,715,000 new
shares of 0.1p each for cash at 0.14p each to raise GBP247,401
(gross).
Following admission of the above shares the Company has a total
of 1,488,730,149 ordinary shares in issue with each share carrying
the right to one vote.
Annual Report
The Annual Report will be posted to all shareholders by 5 June
2017 and will be available on the Company's website at
www.alexandermining.com. Additional copies will be made available
to the public, free of charge, from the Company's registered office
at 2(nd) Floor, 85-87 Borough High Street, London, SE1 1NH.
Annual General Meeting
The Company's Annual General Meeting will be held at the offices
of Druces LLP, Salisbury House, London Wall,
London, EC2M 5PS at 10:00am on Thursday 29 June 2017. The Notice
of the AGM and the associated explanatory notes relating to the
resolutions to be proposed at that meeting will accompany the
Company's annual report.
Disclaimers and forward looking statements
Neither the contents of the Company's website nor the contents
of any website accessible from hyperlinks on the Company's website
(or any other website) is incorporated into, or forms part of, this
announcement.
This news release contains forward looking or future-oriented
financial information, being information which is not historical
fact, including, without limitation, statements regarding potential
results of metallurgical testwork, anticipated applications for the
Company's intellectual property and discussions of future plans and
objectives. Although the Company believes that the expectations
reflected by such information are reasonable, these statements are
based on assumptions and factors concerning future events that may
prove to be inaccurate. Such statements are necessarily based upon
a number of estimates and assumptions based on information
available to the Company about itself and the business in which it
operates. Information used in developing forward-looking
information has been acquired from various sources including third
party consultants, suppliers, regulators and other sources and is
subject to numerous risks and uncertainties that could cause actual
results and future events to differ materially from those
anticipated or projected. Important factors that could cause actual
results to differ materially from the Company's expectations are
the continuing availability of capital resources to fund the
commercialisation of Alexander's technologies; continued positive
results from trials and applications of Alexander's AmmLeach(R) and
HyperLeach(R) technologies and other factors as disclosed in
Company documents filed from time to time. Management uses
forward-looking statements because it believes they provide useful
information to the shareholders with respect to proposed
transactions involving Alexander, and cautions readers that the
information may not be appropriate for other purposes and should
not be read as guarantees of future performance or results.
The Company disclaims any intention or obligation to revise or
update such statements unless required by law.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SEFFMMFWSESI
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May 30, 2017 02:01 ET (06:01 GMT)
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