TIDMAXM
RNS Number : 8770R
Alexander Mining PLC
26 September 2017
26 September 2017
ALEXANDER MINING PLC
INTERIM REPORT FOR SIX MONTHSED 30 JUNE 2017
Alexander Mining plc ("Alexander" or "the Company"), the AIM
quoted mining and mineral processing technologies company,
announces its unaudited results for the six months ended 30 June
2017.
The Company's objective is to become a low cost, highly
profitable and diversified mining company that is focused on
leveraging its wholly owned innovations and patented technologies.
This will be achieved by the commercialisation of its proprietary
mineral processing technologies, partnerships with producing mines
and the acquisition of equity positions in advanced projects.
Highlights
* Successful placing to raise GBP750,000 to fund
working capital
* Accudo Metals Pty Ltd. commitment to proceed with a
detailed feasibility study ("DFS") on the potential
use of Alexander's leaching technology under the
existing licence agreement
* Continued granting of important patents in key mining
jurisdictions
* Continuing and increasingly broad mining industry
interest in using AmmLeach(R) for base metals
recovery from amenable deposits as focus on limiting
capital deployment and reduction in AISC ("All in
Sustaining Costs") for mines remains a priority for
the global mining industry
* Company investigating exciting potential to use its
leaching technologies for the recovery of cobalt, a
key component of most electric vehicle lithium ion
batteries
* New research and development ("R&D") initiatives for
the recovery of high technology metals lithium and
vanadium
Chairman's Review
Dear Shareholders and Investors, herewith I take pleasure on
behalf of your Board of Directors in presenting for your
consideration the Company's results for the six months operating
period ended 30 June 2017, along with commentary on the operating
environment and related outlook.
The period under review was filled with mixed sentiment in the
global mining sector and was compounded by resource nationalism in
some countries, in particular in Latin America and Africa.
Generally, though, the mining and natural resources investment
market remained positive. Even within the volatile economic and
political environment, with precious metal prices, including gold
and silver increasing on demand for risk hedging against government
and public debt levels, US dollar weakness and fear of Fiat
currency failure.
Base metals, Alexander's main area of activity and related base
metals equities continued to rise on LME stock depletion, stronger
than expected economic demand and continued significant capital
inflows. Increased exploration and development activity in the
infrastructure commodities and energy storage or battery metals
have underwritten this further.
Some key environmental features of our operating half-year that
are expected to impact in the second half and beyond are as
follows:
-- Junior mining company valuations are generally positive, in
particular in the precious metals, infrastructure commodities,
energy fuels and battery metals
-- AISC improvements, ongoing productivity initiatives and
capital investment in technologies is also a continuing global
trend of management teams
-- Exploration programmes, project developments, and old mines
are being restarted, in particular in the base & precious
metals commodities, but also in energy fuels (uranium & coal)
or related energy storage metals (cobalt) & mineral salts
(lithium)
Regardless of sentiment in general, at Alexander we have
remained focussed on our core activity of seeking and/or acquiring
commercialisation opportunities for our technologies to release the
embedded value in your Company.
During the period, the Company continued to add granted patents
to its portfolio of intellectual property, as well as continuing
with its research and development activities under various
agreements and, where appropriate, make additional
applications.
The Company broadened its range of metals of interest with its
joint venture ("JV") project for the recovery of lithium from hard
rock sources. This has generated significant industry interest,
including the provision of samples, from several companies in the
mining industry. Pursuant to this interest, the JV agreement
between Alexander and Dr. Nicholas Welham was varied to include the
testing of the potential process on a wider range of lithium
bearing minerals, ores and concentrates.
With the receipt of suitable samples, the research and
development laboratory work has started.
In February 2017, the Company's joint broker Turner Pope
Investments released a comprehensive research note on Alexander for
the general market which is to be found on the Company website.
This was key as we seek to broaden and deepen the understanding of
investors to the potential embedded within the Company's
intellectual property and business in general.
The Company was granted in March an important patent for the
leaching of zinc in Canada, one of the world's foremost mining
sector jurisdictions. The patent, the Australia and USA equivalent
of which was granted on 30 August 2012 and 3 February 2015
respectively, describes a method for leaching zinc from
zinc-bearing carbonate ore.
Accudo's commitment in June to proceed with a DFS on the
potential use of our leaching technology under the existing licence
agreement between us is highly significant. We look forward to
working together closely on this first copper project opportunity
in Australia.
Post period, in September, Alexander announced that it had
agreed a significant new R&D joint venture project ("Project")
to investigate the potential recovery of vanadium from amenable
ores ("Vanadium Leaching Technology"). The Project is between
Alexander, Australian company Multicom Resources Pty Ltd
("Multicom"), and John Webster Innovations Proprietary Limited.
If the JV is successful, the potential use of a new Vanadium
Leaching Technology would initially be focused on Multicom's Saint
Elmo vanadium project in North Queensland, Australia.
Financial
The Company has been assiduous in keeping its overheads to the
minimum necessary, whilst maintaining required expenditure on
business development and intellectual property protection.
In February, the Company raised GBP750,000 in a placing (the
"Placing"). The net proceeds of the Placing were for general
working capital purposes and also for a potential strategic mining
corporate investment opportunity.
With the net proceeds from the Placing, the Company should have
adequate working capital through until the end of June 2018.
Outlook
Alexander will, we believe, begin to benefit significantly from
its technological and market positioning as we move into 2018 and
beyond. In our view, there is a clear investment trend in physical
and tradeable commodities. This includes infrastructure and energy
related commodities, i.e. copper and zinc, both of which are
already in or close to supply/demand deficit, battery metals
(cobalt and lithium) and/or the junior mining equities that hold
such assets or the technologies to enhance them, like Alexander.
This therefore continues to offer you, our shareholders and
potential investors strong fundamentals in the Alexander business
and in the progressive project developments we are engaging.
Your Board has remained focussed in executing its clearly
defined investment plans at all levels. However, we have remained
cautious with regards to the deployment of the Company's financial
resources.
Post the reporting period, the Board of Alexander announced the
resignation of Matt Sutcliffe from his position as Executive
Chairman and director with immediate effect due to health
reasons.
Matt founded Alexander and has been a valued member of the board
since the Company's admission to AIM in 2005. The board expresses
its sincere appreciation to him for his tremendous contribution
over the years, and wishes him all the very best. Matt remains a
supportive shareholder of the Company.
Given the background of the Company's directors and senior
employees, we are also actively reviewing several complementary
opportunities of interest in the mining sector.
Finally, I would like to thank you, Alexander's valued
shareholders, for your continuing support and our employees,
directors, consultants and advisers for their commitment during
difficult times past and for the bright future we see ahead.
Alan M. Clegg Pr. Eng
Non-Executive Chairman
26 September 2017
For further information, please contact:
Martin Rosser Alan M. Clegg
------------------------ ------------------------
Chief Executive Officer Non-Executive Chairman
------------------------ ------------------------
Mobile: + 44 (0) 7770 Mobile: +27 82 469 8378
865 341
------------------------ ------------------------
Northland Capital Partners Limited
Matthew Johnson / Gerry Beaney
+44 (0) 20 3861 6625
(Corporate Finance)
John Howes
(Corporate Broking)
Turner Pope Investments (TPI) Limited
James Pope / Ben Turner
+44 (0) 20 3621 4120
Consolidated income statement
Six months Six months Year ended
ended ended 31 December
30 June 30 June 2016
2017 2016
GBP'000 GBP'000 GBP'000
------------------------------ ----------- ----------- -------------
Continuing operations
Revenue - - -
Cost of sales - - -
------------------------------ ----------- ----------- -------------
Gross profit - - -
Administrative expenses (196) (189) (435)
Research and development
expenses (65) (89) (144)
Operating loss (261) (278) (579)
Finance income - - -
Finance cost - 46 (4)
------------------------------ ----------- ----------- -------------
Loss before taxation (261) (324) (583)
Income tax expense - - -
------------------------------ ----------- ----------- -------------
Loss for the period from
continuing operations (261) (324) (583)
Loss for the period from
discontinued operations - - -
------------------------------ ----------- ----------- -------------
Loss for the period (261) (324) (583)
------------------------------ ----------- ----------- -------------
Basic and diluted (loss)
per share (pence) (0.02)
from continuing operations: p (0.07)p (0.08)p
All components of profit or loss are attributable
to equity holders of the parent.
Consolidated statement of comprehensive income
Six months Six months Year ended
ended ended 31 December
30 June 30 June 2016
2017 2016
GBP'000 GBP'000 GBP'000
------------------------------ ----------- ----------- -------------
Loss for the period (261) (324) (583)
Other comprehensive income: - - 4
Total comprehensive loss
for the period attributable
to equity holders of the
parent (261) (324) (579)
------------------------------ ----------- ----------- -------------
Consolidated balance sheet
As at As at As at
30 June 30 June 31 December
2017 2016 2016
GBP'000 GBP'000 GBP'000
------------------------------ --------- --------- -------------
Assets
Property, plant & equipment - - -
Total non-current assets - - -
------------------------------ --------- --------- -------------
Trade and other receivables 36 50 39
Cash and cash equivalents 672 415 259
------------------------------ --------- --------- -------------
Total current assets 708 465 298
------------------------------ --------- --------- -------------
Total assets 708 465 298
------------------------------ --------- --------- -------------
Equity attributable to
owners of the parent
Issued share capital 14,951 14,325 14,404
Share premium 13,932 13,780 13,772
Translation reserve - - -
Accumulated losses (28,749) (28,260) (28,501)
------------------------------ --------- --------- -------------
Total equity 134 (155) (325)
------------------------------ --------- --------- -------------
Liabilities
Current liabilities
Trade and other payables 574 620 623
Provisions - - -
------------------------------ --------- --------- -------------
Total current liabilities 574 620 623
Total liabilities 574 620 623
------------------------------ --------- --------- -------------
Total equity and liabilities 708 465 298
------------------------------ --------- --------- -------------
Consolidated statement of cash flows
Six months Six months Year ended
ended ended 31 December
30 June 30 June 2016
2017 2016
GBP'000 GBP'000 GBP'000
--------------------------------- ----------- ----------- -------------
Cash flows from operating
activities
Operating loss - continuing
operations (261) (278) (579)
(Increase) / decrease in
trade and other receivables 2 (9) (14)
Increase / (decrease) in
trade and other payables (50) 91 93
Increase / (decrease) in - -
provisions -
Shares issued in payment - -
of expenses -
Share option & Warrant
charge 12 26 49
Net cash outflow from operating
activities (297) (170) (451)
--------------------------------- ----------- ----------- -------------
Cash flows from investing
activities
Interest received - - -
Net cash inflow from investing - -
activities -
--------------------------------- ----------- ----------- -------------
Cash flows from financing
activities
Proceeds from the issue
of share capital 710 466 549
Proceeds from issue of - -
share options -
--------------------------------- ----------- ----------- -------------
Net cash inflow from financing
activities 710 466 549
--------------------------------- ----------- ----------- -------------
Net increase / (decrease)
in cash and cash equivalents 413 296 98
Cash and cash equivalents
at beginning of period 259 165 165
Exchange differences - (46) (4)
--------------------------------- ----------- ----------- -------------
Cash and cash equivalents
at end of period 672 415 259
--------------------------------- ----------- ----------- -------------
Consolidated statement of changes in equity
Share Share Shares Translation Accumulated Total
capital premium to be reserve losses equity
issued
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January
2016 13,825 13,822 - - (27,971) (324)
---------------------- ---------------- --------- -------- ------------ ------------ --------
Accumulated
loss for period - - - - (324) (324)
Total comprehensive
loss for the
period attributable
to equity
holders of
the parent - - - - (324) (324)
---------------------- ---------------- --------- -------- ------------ ------------ --------
Share option
costs - - - - 35 35
Shares issued 500 (8) - - - 492
Share issue
costs (34) (34)
At 30 June
2016 14,325 13,780 - - (28,260) (155)
---------------------- ---------------- --------- -------- ------------ ------------ --------
Accumulated
loss for period - - - - (259) (259)
Translation
Difference 4 4
---------------------- ---------------- --------- -------- ------------ ------------ --------
Total comprehensive
loss for the
period attributable
to equity
holders of
the parent - - - - (255) (255)
---------------------- ---------------- --------- -------- ------------ ------------ --------
Share option
and Warrant
costs - - - - 14 14
Shares issued 79 (8) - - - 71
Share issue
costs
At 31 December
2016 14,404 13,772 - - (28,501) (325)
---------------------- ---------------- --------- -------- ------------ ------------ --------
Accumulated
loss for period - - - - (261) (261)
Translation - -
Difference
---------------------- ---------------- --------- -------- ------------ ------------ --------
Total comprehensive
loss for the
period attributable
to equity
holders of
the parent - - - - (261) (261)
---------------------- ---------------- --------- -------- ------------ ------------ --------
Share option
and Warrant
costs - - - - 12 12
Shares issued 547 214 - - - 761
Share issue
costs - (54) - - - (54)
At 30 June
2017 14,951 13,932 - - 28,749 134
---------------------- ---------------- --------- -------- ------------ ------------ --------
Notes to the interim financial information
1. Basis of preparation
The interim financial information has 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 accounting policies,
methods of computation and presentation used in the preparation of
the interim financial information are the same as those used in the
Group's audited financial statements for the year ended 31 December
2016.
The financial information in this statement does not constitute
full statutory accounts within the meaning of Section 434 of the
Companies Act 2006. The financial information for the six months
ended 30 June 2017 and 30 June 2016 is unaudited. The comparative
information for the year ended 31 December 2016 was derived from
the Group's audited financial statements for that period as filed
with the Registrar of Companies. It does not constitute the
financial statements for that period. Those financial statements
received an unqualified audit report, but contained an emphasis of
matter in respect of going concern.
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. In February 2017 the Company raised GBP750,000,
before expenses, by way of an equity placing. It is anticipated
that further funding will be required in the next twelve months and
the Directors believe that the Company currently 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 prepare the interim financial information 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 timescale. 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.
2. Loss per share
The calculation of loss per share is based on the weighted
average number of shares in issue in the six months to 30 June 2017
of 1,161,843,581 (six months to 30 June 2016: 474,547,651 and year
to 31 December 2016: 698,151,985) and computed on the respective
loss figures as follows:
6 months 6 Months Full year
2017 2016 2016
GBP'000 Per GBP'000 Per GBP'000 Per
share share share
(Loss) - continuing (0.02)
operations (261) p (324) (0.07)p (583) (0.08)p
There is no difference between the diluted loss per share and
the basic loss per share presented. Share options granted to
employees, consultants and directors could potentially dilute basic
earnings per share in the future, but were not included in the
calculation of diluted earnings per share as they were
anti-dilutive for the period presented.
At 30 June 2017, there were 56,200,000 (at 30 June 2016:
12,900,000; at 31 December 2016: 56,200,000) share options in issue
that could have a potentially dilutive effect on the basic earnings
per share in the future.
At 30 June 2017, there were 42,359,373(at 30 June 2016:
186,436,945; at 31 December 2016: 107,101,856) share warrants in
issue that could have a potentially dilutive effect on the basic
earnings per share in the future.
3. Share Capital
Changes in issued share capital and share premium during the
reporting period occurred as follows:
Ordinary shares Number of shares Share Share
capital premium
Balance at 1 January 2017 941,245,377 941,245 13,771,710
01 February- shares issued for cash
at 0.2p each 1,769,772 1,770 1,770
01 February- shares issued for cash
at 0.1p each 10,000,000 10,000 -
15 February- shares issued for cash
at 0.14p each 359,000,000 359,000 143,600
28 February- shares issued for cash
at 0.14p each 176,715,000 176,715 70,686
15 & 28 February - Cost of share issue (53,655)
30 June - Subscriber Warrant charge (1,677)
Balance at 30 June 2017 1,488,730,149 1,488,730 13,932,434
======================================= ================ ========== ==================
Deferred shares Deferred
share
Number of shares capital
Balance at 1 January 2017 135,986,542 13,462,667
--------------------------------------- ---------------- ----------
Balance at 30 June 2017 135,986,542 13,462,667
======================================= ================ ==========
4. Share options and Warrants
All Share Option costs incurred are allocated to Accumulated
Losses.
The Company had a total of 56,200,000 Share Options in issue
during the period (12,900,000 with exercise prices of 4.92p per
share, 43,300,000 with and exercise price of 0.22p per share),
representing 1.22 per cent of the issued share capital of the
Company on a fully diluted basis. Share option charges for the six
months to 30 June 2017 amounted to GBP8,265 (2016: GBP8,021).
The Company had a total of 20,959,375 warrants in issue during
the period for the provision of Broker services (3,600,000 with an
exercise price of 0.5p per share - now expired, 7,359,375 with an
exercise price of 0.4p per share and 10,000,000 with an exercise
price of 0.1p per share - now exercised. Warrant charges for the
six months to 30 June 2016 amounted to GBP3,546 (2016:
GBP18,726).
The Company had a total of 34,999,998 warrants in issue during
the period granted to subscribers of the 2 October 2015 placing
with an exercise price of 0.45 pence per share.
The Company had a total of 51,142,483 warrants in issue granted
to existing shareholders of the Company at 4.30 pm on the 24 May
2016 on the basis of 1 warrant per every 4 qualifying shares held
by shareholders (1,769,772 - now exercised, 49,372,711- now
expired. A charge of GBP1,677 was made to equity for the six months
ending 30 June 2017 (2015: GBP8,109).
5. Post balance sheet events:
The Executive Chairman, Matt Sutcliffe resigned his position as
Executive Chairman on the 29 August 2017.
Mr Alan Clegg was appointed the Non-Executive Chairman of the
Company on the 29 August 2017.
On the 8 September 2017, Alexander announced that it had agreed
a significant new R&D joint venture project to investigate the
potential recovery of vanadium from amenable ores ("Vanadium
Leaching Technology"). The Project is between Alexander, Australian
company Multicom Resources Pty Ltd, and John Webster Innovations
Proprietary Limited.
Copies of these announcements are available to view on the
Company's website at www.alexandermining.com.
Disclaimers
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
IR BSGDCUBDBGRL
(END) Dow Jones Newswires
September 26, 2017 10:23 ET (14:23 GMT)
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