TIDMAUR
RNS Number : 5359R
Aurum Mining PLC
30 June 2015
News Release
30 June 2015
AURUM MINING PLC
("Aurum" or "the Company")
Final Results for the year ended 31 March 2015
Aurum Mining plc (AIM: AUR), the Spanish focused gold and
tungsten explorer, is pleased to report its preliminary audited
financial results for the year ended 31 March 2015.
The Company is pleased to announce that in accordance with AIM
Rules 20 and 26, the Annual Report and Financial Statements for the
year ended 31 March 2015 and the Notice of Annual General Meeting
will be posted to shareholders shortly and will be available on the
Company's website www.aurummining.net. The Annual General Meeting
will be held at 12 noon on 6 August 2015 at the offices of the
Company's solicitors, Wragge Lawrence Graham & Co LLP, 4 More
London Riverside, London SE1 2AU.
Contacts:
Aurum Mining plc www.aurummining.net
Sean Finlay +44 (0) 20 7499 4000
WH Ireland Limited Nominated Adviser &
Broker
Mike Coe, Ed Allsopp +44 (0) 117 945 3470
Notes to Editors:
Aurum Mining is an AIM listed exploration and development
company focused on its highly prospective portfolio of gold and
tungsten assets in North West Spain.
Gold
Through its joint venture agreement with Ormonde Mining plc
(AIM: ORM), Aurum currently has a 58% interest in the Pino de Oro
project in Zamora Province and a 53% interest in the Peralonso and
Cabeza projects in Salamanca Province.
Tungsten
Aurum's 20% owned Morille Tungsten project is located
approximately 15km south west of Salamanca in North West Spain and
covers an area of 5,796 hectares. The permit area is a 'brownfield'
site with historical data indicating production from the site of
high quality tungsten concentrates.
Review of Activities
The Company's 2014 Interim Results, which were published on 6
November 2014, outlined that the Board was in the process of
transforming the Company and changing the Company's strategy and
direction in response to the very challenging market conditions
that continue to blight the junior natural resource sector. The
announcement went on to say that the Board would be working closely
in conjunction with the Company's major Shareholder to identify and
complete a transformational deal that will enhance the future of
the Company.
Since November, the evolution of the Company has continued and
this has been evidenced by Board changes, a fundraise to put the
Company on a sound financial footing and during this period the
Board has looked at a number of potential opportunities for the
Company. The key is to find a deal that will give the Company a
sustainable and long-term future, freeing the Company from being a
victim of the structural change occurring in the junior mining
market.
Most significantly, in April 2015, the Company announced that
David Williams, the Company's major shareholder with over 29% of
the issued share capital of the Company had agreed to join the
Board as Chairman. Not only has David been a highly supportive
major Shareholder in recent years, he also has a huge amount of
business experience, and this experience will be instrumental in
helping the Company achieve its objectives.
Shareholders in AIM listed junior mining companies have faced a
long period of falling valuations and increased dilution, and with
no end in sight for the ongoing downturn, the Board feels that this
change in strategy is unquestionably the right thing for the
Company to do, and with David at the helm, the Company will
continue to review and appraise opportunities that have the
potential to help Aurum complete its transformation.
The Board is looking forward to keeping the market up to date
with progress.
Gold projects
In tandem with the new strategic approach, the Company will be
looking to drive value from the successful exploration work done on
the gold projects to date. Aurum is working closely with its joint
arrangement partner Ormonde Mining plc ("Ormonde") (AIM: ORM) to
achieve this. There have been a number of discussions with
interested parties during the period around structuring a deal for
the gold projects and a number of these discussions are on-going.
There is currently a very low level of activity taking place on the
gold projects, and during this transitional period Aurum will not
be funding the projects - this has led to a small dilution on its
interest on the gold projects, albeit an immaterial dilution.
Morille tungsten project
Following the completion of the deal with Plymouth Minerals
Limited ("Plymouth") (ASX:PLH) in which Plymouth became Aurum's
partner on the Morille tungsten project, significant exploration
work has been carried out on the project. The Board has been
impressed by the energy and enthusiasm of Plymouth and the work
done to date has yielded some very promising results. The Board
looks forward to updating the market with further exploration
updates in the near future.
Key financials
For the twelve months to 31 March 2105, the Company is reporting
a loss of GBP317,000 compared to a loss of GBP530,000 for the same
period in 2014.
During this period of transition, cash management and cost
control have remained key priorities for the Company.
Administrative costs have been materially reduced over recent
months.
On 21 August 2014, the Company announced that it had raised
GBP60,000 (before expenses) through a placing of 4,800,000 new
Ordinary Shares.
On 15 April 2015 the Company announced that it had completed a
subscription of 25,758,356 new Ordinary Shares to new and existing
Shareholders at a price of 1 pence per share to raise approximately
GBP257,500 before expenses.
The funds raised are being used to fund working capital
requirements to enable the business to advance its
transformation.
Corporate
The Board would like to thank its Shareholders and advisers for
their input during this transitional period.
To facilitate the transformation process and to reduce costs,
the Company also announced various Directorate changes during the
first half of 2015. In addition to David Williams being appointed
to the Board as Chairman, Chris Eadie and Mark Jones have stepped
down from the Board. Sean Finlay stepped down as Chairman on
David's appointment but remains on the Board as a Non-Executive
Director along with Haresh Kanabar who also remains on the Board as
a Non-Executive Director.
Chris Eadie continues to assist the Company as a consultant on a
part-time basis and in order to keep operating costs to a minimum,
David Williams has agreed to take no salary until a
transformational deal is completed.
Qualified Person
Sean Finlay, Professional Geologist, Chartered Engineer,
Non-Executive Director of Aurum Mining plc, and a qualified person
as defined in the Guidance Note for Mining, Oil and Gas Companies,
June 2009, of the London Stock Exchange, has reviewed and approved
the technical information contained in this report.
On behalf of the Board
David Williams
Chairman
30 June 2015
STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME
year ended 31 march 2015
2015 2014
Notes GBP'000 GBP'000
Impairment charge (27) -
Administrative expenses (290) (479)
-------- ----------------
Operating loss (317) (479)
Finance income - 1
-------- ----------------
Loss for the year before taxation (317) (478)
Taxation - -
-------- ----------------
Loss for the year from continuing
operations (317) (478)
Loss for the year from discontinued
operations, net of tax - (52)
-------- ----------------
Loss and total comprehensive
loss for the year (317) (530)
-------- ----------------
Loss and total comprehensive
loss per share expressed in
pence per share
From continuing operations
Basic and Diluted 2 (0.22)p (0.34)p
From discontinued operations
Basic and Diluted 2 - (0.03)p
Total operations
Basic and Diluted 2 (0.22)p (0.37)p
Statement of financial position
as at 31 march 2015
Company number: 05059457 2015 2014
GBP'000 GBP'000
Assets
Non-current assets
Intangible assets 899 899
Investments 79 64
Amounts owed by subsidiaries - -
--------- ---------
Total non-current assets 978 963
--------- ---------
Current assets
Receivables 13 62
Cash and cash equivalents 106 214
--------- ---------
Total current assets 119 276
--------- ---------
Total assets 1,097 1,239
--------- ---------
Liabilities
Current liabilities
Trade and other payables 89 113
--------- ---------
Total current liabilities 89 113
--------- ---------
Total liabilities 89 113
--------- ---------
Net assets 1,008 1,126
--------- ---------
Capital and reserves attributable
to the equity holders of the
company
Share capital 1,461 1,413
Shares to be issued 140 -
Share premium 11,596 11,585
Retained deficit (12,189) (11,872)
--------- ---------
Total Equity 1,008 1,126
--------- ---------
statement of Changes in equity
year ended 31 march 2015
Shares Share
Share to be premium Retained Total
capital issued deficit Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 April 2013 1,413 - 11,585 (11,342) 1,656
Total comprehensive
expense for the
year - - - (530) (530)
At 31 March 2014 1,413 - 11,585 (11,872) 1,126
--------- -------- ----------------- --------------- ----------------
Total comprehensive
expense for the
year - - - (317) (317)
Issue of shares
net of issue costs 48 - 11 - 59
Shares to be issued - 140 - - 140
At 31 March 2015 1,461 140 11,596 (12,189) 1,008
------ ---- ------- --------- ------
STATEMENT of cash flows
year ended 31 march 2015
2015 2014
GBP'000 GBP'000
Cash flows from operating activities
Loss for the year before tax (317) (530)
Adjustments for:
Impairment charge 27 -
Finance income - (1)
Disposal of subsidiaries - 52
Exchange differences - 1
-------- --------------------
Cash flow from operating activities
before changes in working capital (290) (478)
Decrease in other receivables 7 13
(Decrease) / increase in trade and
other payables (24) 18
-------- --------------------
Net cash flow used in operating
activities (307) (447)
-------- --------------------
Investing activities
Ormonde joint arrangement payments - (159)
Disposal of subsidiary net of cash - 186
Increase in loans to subsidiaries - (60)
Net cash flow used in investing
activities - (33)
-------- --------------------
Financing activities
Proceeds from issue of share capital 60 -
Expenses paid in connection with (1)
share issues -
Cash received in respect of shares 140
to be issued -
-------- --------------------
Net cash flow from financing activities 199 -
-------- --------------------
Net decrease in cash and cash equivalents (108) (480)
-------- --------------------
Cash and cash equivalents at the
beginning of the year 214 694
Effect of exchange rate changes
on cash and cash equivalents
-------- --------------------
Cash and cash equivalents at the
end of the year 106 214
-------- --------------------
NOTES
1. Basis of preparation
The financial information set out above, which was approved by
the Board on 29 June 2015 has been compiled in accordance with
International Financial Reporting Standards as adopted by the
European Union ("IFRS"), but does not contain sufficient
information to comply with IFRS. The Company expects to distribute
its full financial statements that comply with IFRS shortly. The
financial statements have been prepared on the historic cost basis
and on a consistent basis with the accounting policies adopted in
the prior year.
In the prior year, the Company sold 80% of its only wholly owned
subsidiary, leaving the Company with no subsidiaries to
consolidate. Consolidated accounts have therefore not been prepared
in 2015, and accordingly, Company financial statements have been
prepared for the current and the prior year.
The financial information set out above does not constitute the
Company's statutory accounts for the year ended 31 March 2015 but
is extracted from those accounts. The Company's statutory accounts
for the year ended 31 March 2015 will be filed with the Registrar
of Companies following the Company's annual general meeting. The
independent auditors' report on those accounts was unqualified
although an emphasis of matter was included in the accounts to draw
attention to going concern. The financial statements have been
prepared on a going concern basis.
Following a review of the Company's operations, its current
financial position and cash flow forecasts, the Directors have
formed a view that the Company will have sufficient financial
resources available to it to continue in operational existence and
meet its financial commitments as they arise in the next twelve
months. The Directors have formed this view based on the amount of
available cash within the Company, the Company's historical track
record of raising funds from the AIM market, and the assets and
investments the Company holds which could be made available for
potential sale, should the need arise.
Based on the above the Directors have concluded that the Company
can continue as a going concern for a period of at least twelve
months from the date of signing these financial statements.
Accordingly, the Directors continue to adopt the going concern
basis for the preparation of these financial statements.
The forecasts prepared by the Directors reflect the requirement
for the Company to raise further funds over the next twelve months
or to dispose of at least one of the assets or investments of the
Company. Given that at the date of approval of the financial
statements there are no legally binding agreements in place
relating to either fundraising or to the sale of any of the
Company's assets or investments, there can be no certainty relating
to these potential causes of action, despite the Company's track
record of raising funds or completing asset transactions. This
position indicates the existence of a material uncertainty which
may cast significant doubt about the Company's ability to continue
as a going concern. The financial information / statements do not
include the adjustments that would result if the Company was unable
to continue as a going concern, which would principally relate to
the impairment of intangible assets and investments.
No statement was included under section 498(2) or (3) of the
Companies Act 2006. The Company's statutory accounts for the year
ended 31 March 2014 have been filed with the Registrar of
Companies. The independent auditors' report on those accounts was
unqualified, but an emphasis of matter was included in the accounts
to draw attention to going concern but did not contain any
statement under section 498(2) or (3) of the Companies Act
2006.
2. loss per share
Basic loss per share is calculated by dividing the loss
attributable to the ordinary shareholders by the weighted average
number of ordinary shares outstanding during the year.
For diluted loss per share, the weighted average number of
shares in issue is adjusted to assume conversion of all the
dilutive potential ordinary shares. The potential dilutive shares
are anti-dilutive in 2014 and 2015 as the Company is loss
making.
At the reporting date there were 4,450,000 (2014: 4,450,000)
potentially dilutive ordinary shares. Dilutive potential ordinary
shares include share options and warrants.
2015 2014
GBP'000 GBP'000
Net loss attributable to equity
holders of the parent:
From continuing operations (317) (478)
From discontinued operations - (52)
From total operations (317) (530)
--------------------- --------
2015 2014
Number Number
Weighted average number of
shares:
Weighted average number of
shares 145,296,862 141,291,930
------------ ------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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